Are Medical Malpractice Settlements Taxable in Massachusetts?

Christopher Earley | | Massachusetts Medical Malpractice

No. As is the case with auto accident, slip and fall, dog bite, and all other personal injury settlements, medical malpractice settlements are not taxable in Massachusetts. The reason such settlements are not taxable is because they are intended to put the injury victim in the position they were in before the accident. Receiving a settlement is not a taxable event because there is no “gain” because the injury victim is “made whole” through the settlement. However, settlements for emotional distress, as well as punitive damage awards, are in fact taxable.

Author: Christopher Earley
Christopher Earley

Nearly twenty years ago when I opened my practice I decided to dedicate my career to advancing the rights of injury victims against powerful insurance companies. Personally, I find great satisfaction in helping good and honest people who have been wronged due to no fault of their own. I am really proud to have earned our clients’ hard-earned trust by running a law firm our clients can always count on to do the right thing.