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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.

Client Reviews
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    5.0/5.0

    Robert Feinberg and his team were nothing short of stellar. They were prompt in all communications, insulated me from complications with insurances while I recovered from my injuries, and produced a favorable outcome after all was said and done. Ver...

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    Nigel Mathes

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    5.0/5.0

    Great communication and follow up. Responsive to my needs and positive result's !

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    Chris Connor

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    5.0/5.0

    They went the extra mile. Stood behind me. Had a difficult claim with a motor vehicle accident. I'm very satisfied with the outcome. Richard

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    richard turk

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    5.0/5.0

    We have had the pleasure of working with Colleen Santora on couple legal issues. We have always had a good communication during our very long process. We feel good responsive, open,& honest communication during a injury case should be the strongest ...

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    Edward Hyde

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    5.0/5.0

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

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    Yelena Wise

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