When You’re Self-Employed: Calculating Lost Income After a Car Accident

James R. Kearney
Fairfax and Northern Virginia Personal Injury Lawyer

Missing work or losing your job because of injuries you suffered in a car crash caused by a negligent driver creates financial hardship when you are an employee. But if you’re self-employed, the losses can be even more devastating.  Lost income when you're self-employed

It is challenging to calculate lost income for a self-employed person. Income refers not only to money earned, but it can also mean economic losses. These include recent profits, upcoming contracts, missed business opportunities, and lost goodwill. 

Factors Used to Determine Lost Income

Depending on the circumstances of your self-employment, the evidence needed to prove your lost income will vary. For example, if you are a freelancer who regularly works for the same clients, you could ask them to write a letter indicating the amount of work you would have been assigned while you were injured and the amount they would have paid you.

If your income doesn’t vary much from year to year, your tax returns can show your normal income.

If you had to turn down a large project or business opportunity because of your injury, provide documentation in the form of an offer letter or other correspondence.

If you have many clients, such as a hairstylist, you can gather your business records from the previous years to demonstrate income.

How to Document Economic Losses After a Car Accident 

Proof in the form of documentation is crucial in any personal injury claim, making legal representation important. Your lawyer will help you deal with the insurance company and likely recommend that you provide the following:

  • Tax returns
  • Profit and loss statements
  • Receipts for any overhead costs paid while you were injured
  • Proof of lost projects or customers because you were unable to work

Your lawyer might also hire an economic loss expert who can quantitate the losses you are experiencing based on the type of business you are in.

Contact a Virginia Car Accident Attorney

If you’re self-employed and have been injured in a car accident, consult an experienced attorney who can act as your advocate. Get in touch with the car accident lawyers at Kearney, Freeman, Fogarty & Joshi, PLLC in our Fairfax office or through the contact form on this page to learn more about how we can help.

 

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