Can I Be Compensated for Lost Income After a Car Accident?

One of the most disruptive consequences of a crash is forced time off from work. Fortunately, car accident victims in Arizona can claim compensation for the income they lose due to a collision as long as they can provide evidence demonstrating the cause of their missed work and the extent of their losses. However, insurance companies often look for ways to dispute a lost wages claim. An experienced Arizona car accident attorney can help you by organizing and presenting your evidence to pursue the full compensation you deserve for your lost income.

What Is Covered by Lost Wages?

Your car accident injuries may force you to miss work or reduce your working hours, either due to a temporary or permanent disability or injury-related medical appointments. However, you may be entitled to compensation for the income you lose as a result.

Compensation for lost wages includes any income you would have earned had you not been injured in the car accident. This includes salary, hourly pay, bonuses, commissions, and self-employment income. If you used sick days or vacation time while recovering from your injuries, you might also be able to recover compensation for those lost benefits. You may experience lost earning capacity because of long-term injuries, which you can be compensated for, too. An experienced Arizona car accident attorney can help you identify all forms of lost income and benefits that may be eligible for compensation.

How Are Lost Wages Calculated in a Car Accident Case?

If you are a salaried employee, calculating your lost wages is straightforward: simply multiply your daily rate by the number of days you missed work due to your injuries.

If you’re an hourly employee, the calculation is based on the number of hours you typically work and your hourly rate. If you regularly earn overtime pay or bonuses, these amounts may also be factored into your lost wages claim. Your attorney can help you gather the necessary documentation and calculate the full extent of your lost income.

Can I Recover Lost Wages If I Am Self-employed?

Self-employed individuals are also eligible to recover lost wages after a car accident. However, proving lost income may be more challenging for those who are self-employed, as they may not have the same type of documentation as salaried or hourly employees. To support your claim, you will need to provide evidence of your pre-accident earnings, such as unfilled contracts, comparisons of pre- and post-accident income, or testimony from clients.

You may also need to demonstrate that your injuries prevented you from working and that you lost income as a direct result. An attorney with experience handling car accident claims for self-employed individuals can help you navigate this process and ensure that you pursue the full compensation you deserve.

What Is Needed to Prove Lost Wages from a Car Accident?

To prove lost wages from a car accident, you must provide documentation demonstrating your income before the collision and the amount of work you missed due to your injuries. This may include pay stubs, tax returns, W-2 forms, or a letter from your employer verifying your salary and missed workdays. If you are self-employed, you may need to provide additional documentation, such as profit and loss statements or 1099 forms.

You will also need to establish a direct link between your injuries and your inability to work, which may require medical records and a doctor’s note outlining your limitations and expected recovery time. Keeping detailed records of all expenses and losses related to your accident will help strengthen your claim, reducing the likelihood that the insurance company can dispute the effects of the injury on your life.

How Will I Be Compensated for My Lost Wages?

In most cases, lost wages are recovered as part of your overall settlement or award at the conclusion of your case. Your attorney will negotiate with the at-fault driver’s insurance company on your behalf so that your lost wages are fully accounted for in your settlement. If the case goes to trial, your lost wages will be included in the damages you seek from the court.

Your lost wages will be paid out under the terms of your settlement or award, likely either as a lump sum or as structured payments over time. It is important to note that even though this compensation is intended to replace income, your lost wages award will not be subject to income taxes. IRS policy exempts nearly all aspects of personal injury awards from taxation. If the insurance company sends you a 1099 form at the end of the year, consult with your attorney to ensure you respond appropriately without assuming a greater tax liability than is necessary.

Does Arizona Have a Time Limit for Filing a Car Accident Case?

Arizona’s statute of limitations for car accident lawsuits sets a strict two-year deadline for filing. If you do not initiate your lawsuit within two years of the collision date, the court may bar you from recovering the compensation you deserve. Consulting with a knowledgeable Arizona car accident attorney as soon as possible can help ensure that you do not miss this deadline. It will also allow your lawyer to collect evidence while it is still fresh and interview witnesses before their memories fade.

Contact an Arizona Car Accident Lawyer

In an ideal world, recovering compensation for lost wages after a car accident would be a straightforward process. However, bureaucratic obstacles and greedy insurance companies can make this task far more frustrating than it needs to be. Working with a skilled Arizona car accident attorney can give you the legal guidance and insights you need to seek the compensation you deserve.

The skilled legal team at Mushkatel, Gobbato, & Kile, P.L.L.C. has over 50 years of combined legal experience to put at your disposal. We know how to build a strong case backed by solid evidence, handle the insurance company, and maximize your recovery. With us on your side, you can feel confident in your potential to move past this challenging time and secure a brighter future. Call us today or contact us online for a confidential consultation with a car accident lawyer in Arizona.

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