If self-employed, how is lost income calculated?
Previous tax records are commonly used to calculate past and present losses. If you are self-employed, in order to prove loss of income as a result of being injured, you may have to show past income tax records, the more years generally the better, to prove what you’ve earned in the past to indicate what you’re likely losing now. If you don't have copies of your previous tax returns, you can request them from the IRS website - IRS.gov. Although IRS records are protected by your right to privacy, it may make it much easier to prove your claim if you provide them nonetheless.
Unfortunately, a problem with this is that the past years don’t always tell the story of the current year, or the future. It’s usually also helpful to provide your calendar of appointments, and possibly obtain letters from those with whom you planned doing business in order to strengthen any future lost income claim. While difficult to prove lost opportunities, letters from potential clients and/or partners, can prove very helpful.Return to Auto Acciddent FAQs