How to Calculate Lost Income When You’re Self-Employed

If you’re dealing with a personal injury case as the result of a car accident or other incident, part of the goal of your lawsuit is to be compensated for the expenses related to your injuries. These expenses include lost wages or lost income — in other words, the money you would have earned if you had not been out of work due to your injuries. For people with “regular” jobs, this is fairly easy. They can simply use their hourly pay rate or salary along with how much time they missed to calculate lost wages. However, if you are self-employed, it may be a little more difficult to calculate your lost income. Read on to discover how freelancers, independent contractors, and sole proprietors can calculate their lost income.

Track down your past 1099-MISC forms.

You likely filled out a miscellaneous income form last time you did your taxes. Track last year’s down — or better yet track down all of them for the last several years — so that you can demonstrate your history of earnings.

Determine average incomes.

Is your work seasonal? Does it come in bursts? You can get a clearer idea of how much income you’ve realistically lost by finding averages.

New business? Show contracts for future work.

If your business is new, it can be more difficult to establish a pattern of income that one could reasonably expect to have gone on continuously. In this case, your contracts for future work or existing product orders may serve as sufficient evidence of what you would have earned. Good record-keeping is essential!

Partner with an experienced personal injury attorney.

If you have been injured due to the negligence of another, it is important to partner with an experienced personal injury attorney who can help you get maximum compensation in your case. Your attorney can offer you plenty of guidance if you are unsure about figuring out how much income you would have made if it had not been for your injury.

At Sutton Law Group, we have decades of experience helping clients with cases like yours. We are passionate about providing personalized attention, straightforward legal advice, and relentless like creative commitment in every case we take. We would love to discuss your case with you. Let’s make an appointment to talk! Give us a call at (305) 667-4481.

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Sutton Law Group

Sutton Law Group is a full-service, multidisciplinary law office serving clients in and around Miami, Florida. Established in 1985, we are trusted legal advisors and advocates in complex and even life-changing legal actions.

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