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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.

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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.

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    Robert Feinberg did a fantastic job handling our case. He is a thoughtful, caring man, cordial and a complete professional. The settlement we received was more than we had ever anticipated, his legal work is beyond reproach. Thank you Robert!!

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    Robert Bard

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    After my motorcycle accident I contacted Feinberg & Alban. I met with Marsha for a consultation and she was great. Their entire team kept me in the loop for the entire process. Colleen was also a part of my case, she help me with understanding a lot ...

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    I will be forever grateful to Robert and his team at Feinberg & Alban, P.C. He is the best of the best and I truly cannot recommend his expertise enough. Having Robert represent me brought me great comfort. I never once doubted that he would not be s...

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    Mitchell Petitti

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    I will be forever grateful to Robert and his team at Feinberg & Alban, P.C. He is the best of the best and I truly cannot recommend his expertise enough. Having Robert represent me brought me great comfort. I never once doubted that he would not be s...

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    Robert and his team were unbelievably caring and thorough in working on my interests. It was a very serious case. It needed much attention and skill. Robert and his team were always there for me from the time I was in the hospital. They got me an ama...

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