How to Calculate Lost Wages When Determining Damages in a Vehicle Accident Injury Claim

two hands opening envelope with paycheck insideIf you were injured in a vehicle accident and lost wages because you were unable to work, you should speak with an attorney about recovering damages. Many people are already aware that they might be able to recover damages for medical and other expenses related to the accident, but they may also be able to recover lost wages as well as future earning potential.

Calculating Your Claim for Lost Wages

Calculating lost income for hourly workers starts with simply multiplying the rate of pay times the number of hours missed. If there are bonuses and overtime pay to consider, the court will likely take an average of these. The process is similar for salaried workers, but the calculations include weekly or monthly pay rather than hourly.

To prove to the court what you have lost in wages, be prepared to present:

  • Tax returns
  • Pay stubs
  • Bank statements
  • Letters from your employer indicating how much time you were off work

Calculating lost income for self-employed contractors or business owners can be more difficult. Most courts will take into account prior tax records and business records showing past revenue compared with revenue after the accident.

How to Calculate Loss of Future Earning Potential

Sometimes vehicle accident injuries are so severe that victims have a permanent disability that will affect their future earnings. This form of damages asks for compensation for the difference between what you lost versus what you might have been able to earn had the accident never happened. 

Your attorney will help ensure that calculations for lost future earnings are as accurate as possible so you can achieve the maximum possible compensation. Financial experts may be needed to provide a picture of how much value to place on lost benefits and lost earning capacity.

Contact an Alaska Vehicle Accident Lawyer

If you have been out of work because of injuries you suffered in a car accident, an experienced attorney can provide guidance on making the appropriate calculations for lost wages as well as lost earning potential. Alaska attorney Ben Crittenden can help you get the compensation you deserve. Sign up for his free newsletter where Alaska vehicle accident victims can learn more about their options.

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