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Springsteen, 63, will be honoured at a February 8 gala in Los Angeles hosted by comedian Jon Stewart and held in conjunction with the annual Grammy Awards, the recording world's most prestigious honours, which will be handed out on February 10.
"The Boss" has actively supported many charities over the years, including those focused on homelessness, hunger and helping veterans, and last year he participated in benefit concerts to aid victims of superstorm Sandy.
Among top music stars slated to perform at the MusiCares gala are Sting, Neil Young, Jackson Browne, Kenny Chesney, Faith Hill, Elton John, Tim McGraw and Patti Smith.
Past MusiCares Person of the Year honourees have included Tony Bennett, Bono, Phil Collins, Neil Diamond, Aretha Franklin Billy Joel, Elton John, Sting, Paul McCartney, Luciano Pavarotti and Barbra Streisand.
New Jersey native Springsteen, known for hits including "Born to Run," "Born in the U.S.A." and "Dancing in the Dark," has won a string of honours including Grammy, Golden Globe and Academy Awards.
He has often taken inspiration from his home state and used his star platform to highlight both its charms and challenges, most notably in the aftermath of superstorm Sandy which devastated New Jersey's famous coastline in October.
MusiCares, which was established in 1989 by the Recording Academy, maintains a foundation that provides programmes and services to members of the music community such as emergency financial assistance, educational workshops and other support services.