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Your email address will not be published.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

    Very professional firm, always pay attention to detail. Knowledgeable and successful. Written on behalf of Mikhail Zaytsev.

    Read more

    Yelena Wise

  • google
    5.0/5.0

    I was a victim of a serious crash and sustained some major injuries. I was referred to Feinberg & Alban by a personal friend while I was in rehab. I contacted on a weekend and was put in touch with Robert. After speaking over the phone with Robert an...

    Read more

    Craig Donovan

  • lawyers
    5.0/5.0

    I was a victim of a serious crash and sustained some major injuries. I was referred to Feinberg & Alban by a personal friend while I was in rehab. I contacted on a weekend and was put in touch with Robert. After speaking over the phone with Robert an...

    Read more

    Client

  • lawyers
    5.0/5.0

    Большое спасибо сотрудникам компании Feinberg & Alban и особенно Marsha Alban за высокий профессионализм и внимательное отношение к клиентам. Благ...

    Read more

    Client

  • google
    5.0/5.0

    We would recommend Atty. Colleen Santora and the entire team at Feinberg & Alban highly. We had a major auto accident in 2012 and my husband also at a bad motorcycle accident as well four years after. We have always relied on her, She is a class act ...

    Read more

    Kyle Meahl

See all reviews
Awards & Affiliations
Contact us

Quick Contact Form