Search Site
Menu

Personal Injury Awards are Tax-Free

Clients are forever amazed that the Internal Revenue Code exempts from the definition of income personal injury awards. Believe it or not, thus has ever been the case. We are not accustomed to benefits such as this flowing to our personal injury clients.

This great advantage somehow eludes many experienced lawyers. I am often called by other attorneys who ask how “A Release Of All Claims” should read. When I get to their point, I learn that they are concerned that some amount may be attributed to loss of earnings and thereby, in this erroneous view, subject their clients to tax. As George H.W. Bush once said, “Read my lips, no new taxes.” Well, there are no taxes to be paid on personal injury awards regardless of whether some amount relates to a loss of earning capacity.

To be sure, in some tort cases Congress has altered this, such as with punitive damages and non-physical injuries i.e. where there has been gender and age discrimination. However, in the vast majority of tort cases, the exemption from income remains. So may it ever be so.

Leave a Reply

Your email address will not be published. Required fields are marked *

Feinberg & Alban, P.C. fervently protects your rights
  • The Boston firm of Feinberg & Alban, P.C. specializes its practice in the area of personal injury.

    The attorneys serve the entire state of Massachusetts in addition to affiliating with lawyers in other states to handle cases outside of Massachusetts.

  • $7.7 Million Award for Feinberg & Alban Client in Personal Injury Trial

    Boston Attorneys Win Highest Injury Verdict in Massachusetts in 2011 & 2012.

Client Reviews
  • google
    5.0/5.0

    Colleen was great to deal with and communication was easy.

    Read more

    Graham Eyres

  • google
    5.0/5.0

    Colleen represented both my daughter and myself in a car accident case. It was a tricky and very involved case with many detail oriented issues to deal with. She handled everything with confidence and grace and supported us through what were some ver...

    Read more

    Rhonda Brouder

  • google
    5.0/5.0

    I’m a college student in the Boston area who suffered a pedestrian personal injury in December of 2022. Thankfully I was put into contact with Feinberg & Alban PC and I worked closely with Robert and Perry Feinberg who treated me with respect and f...

    Read more

    Anne O'Leary

  • google
    5.0/5.0

    Alexis Cahill was great, professional, and was open for me to contact on any questions I may have had during the process. Feinberg & Alban PC's services were nice as well, and I'd recommend them due to the transparency, what they were able to negotia...

    Read more

    Branden B.

  • google
    5.0/5.0

    My mom had a great experience with Feinberg as her attorney, after she fell near her house, and he took her under his wing. Mr. Feinberg was helpful, very organized and kind. He helped my mom a lot, very happy with results

    Read more

    Jane sungurov

See all reviews
Awards & Affiliations
Contact us

Quick Contact Form

  • This field is for validation purposes and should be left unchanged.