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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.
Feinberg & Alban, P.C. fervently protects your rights
Client Reviews
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5.0/5.0Colleen and Robert were very responsive during a long process, always ready to answer our questions. They exhibited that much-needed combination of listening to us as clients and guiding us with their expertise, through all the delays and obstacles e...
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5.0/5.0
Attorney Colleen Santora was amazing! I was hit by a car, completely overwhelmed and really just needed to focus on getting better. Retaining her, truly gave me peace of mind that all of the upcoming medical bills would be taken care of. I healed ...
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5.0/5.0
While visiting boston, my husband was injured and required surgery, and the tribulations that followed. Living out of state, we had NO idea what to do, and we needed guidance. Collen and her team were and ARE a God sent. Colleen answered all of ...
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5.0/5.0
I worked with Colleen Santora and had a great experience! I was very overwhelmed after my injury (MBTA at fault) and she made the process clear and easy. She always answered any questions I had and answered my emails within minutes every time. She al...
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5.0/5.0
On vacation my mother had an accident in the Boston Airport that required surgery and prolonged physical therapy. It was a long, painful and extremely stressful process. My mother felt hopeless and her chronic pain was debilitating. My mother finally...
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