You drive for Uber. $1,200 per week before crash. $300 per week after – can only work 10 hours instead of 40 due to back pain. $900 per week lost income. $46,800 annual loss.
How do you prove this when you’re a 1099 contractor with no employer to write a letter?
Lost wage claims are straightforward for W-2 employees: employer letter states rate, dates missed, done. But self-employed contractors, gig economy workers, and commissioned salespeople face documentation challenges that W-2 employees don’t.
Insurance companies argue gig income is volatile, self-employment income is underreported, commission loss isn’t crash-related. Without proper documentation, they reduce or deny wage loss claims even when income loss is real.
This guide explains what types of lost income you can recover, documentation requirements for W-2 employees (employer letters), self-employed workers (tax returns and business records), gig economy workers (platform data and 1099s), and how to prove future earning capacity loss when permanent disability prevents returning to pre-crash work.
Types of Lost Income You Can Claim
Georgia law allows recovery for multiple wage loss categories:
Time missed from work:
The most basic calculation. Hours or days you couldn’t work due to injuries, medical appointments, or recovery.
Formula:
- Hourly workers: Hourly rate × hours missed
- Salaried workers: Annual salary ÷ 260 workdays × days missed
Example: $30/hour worker misses 6 weeks (240 hours) = $30 × 240 = $7,200
PTO and sick leave used:
Compensable even though you were paid. You depleted a benefit you paid for (directly or through reduced wages). Without crash, you’d still have those days available for vacation or future illness.
Example: Used 10 PTO days at $200/day = $2,000 recoverable
Lost bonuses and commissions:
If crash prevented earning performance bonuses or sales commissions, these are recoverable if you can prove you would have earned them absent the crash.
Example: Sales rep averaging $15,000 monthly commissions, unable to work for 3 months = $45,000 lost commissions
Self-employment income reduction:
Business income drop attributable to crash. Calculated by comparing pre-crash average income to post-crash income during recovery period.
Example: Contractor averaging $8,000/month pre-crash, earned $2,000/month for 4 months post-crash = $6,000/month × 4 = $24,000 loss
Reduced earning capacity:
Permanent disability preventing return to pre-crash work. This is future wage loss – what you’ll lose over your remaining work life due to career change or reduced work capacity.
Example: Electrician ($60k/year) with hand injury forcing career change to desk work ($40k/year), 20 years remaining work life = $20k/year × 20 = $400k gross loss (reduced to present value ~$300k)
W-2 Employees: Employer Letter Requirements
If you’re hourly or salaried employee with W-2 income, documentation is straightforward.
Required: Employer letter on company letterhead stating:
- Your position/title
- Your hourly rate OR annual salary
- Inclusive date range missed (e.g., “June 15, 2024 through July 30, 2024”)
- Total hours OR days missed
- Whether PTO/sick leave was used
- Whether bonuses or commissions were lost due to absence
- Current work status (returned full-time, reduced hours, still out)
Sample language:
“John Smith has been employed as Electrician with our company since March 2020. His hourly rate is $32.50. Due to injuries from motorcycle accident on June 15, 2024, Mr. Smith was unable to work from June 15, 2024 through August 10, 2024, totaling 400 hours of missed work. He used 80 hours of accrued PTO during this period. He returned to work on August 11, 2024 at full capacity.”
Supporting documentation:
- Paystubs showing pre-crash earnings
- Paystubs showing reduced/zero earnings during recovery
- Paystubs showing return to work
- Leave balance statements (showing PTO depletion)
If returned at reduced capacity:
Letter should state:
- Date returned
- Pre-crash hours per week
- Current hours per week
- Ongoing restrictions
Example: “Returned September 1, 2024 at 20 hours/week (reduced from 40 hours/week pre-crash) due to medical restrictions limiting lifting and overhead work.”
If still unable to work:
Letter states:
- Last day worked
- Continued employment status (on leave, FMLA, disability)
- Whether position remains available
Bonuses and commissions:
If crash prevented earning bonus or commission:
- Letter explains bonus/commission structure
- Shows historical earnings
- Explains how crash prevented earning this period’s bonus/commission
Example: “Mr. Smith participates in quarterly safety bonus program. Had he worked full quarter without incident, he would have earned $2,500 safety bonus. Due to crash-related absence, he did not qualify for Q2 2024 bonus.”
Self-Employed: Tax Returns and Business Records
Self-employment income loss is harder to prove than W-2 income. No employer letter. Income fluctuates. Insurance companies scrutinize heavily.
Required documentation:
Tax returns (2-3 years):
Shows pre-crash income trend. If you averaged $75,000/year for past 3 years, sudden drop post-crash is attributable to injuries.
Use:
- Schedule C (sole proprietors)
- Form 1065 (partnerships) with K-1
- Form 1120S (S-corps) with W-2 + K-1
Business bank statements:
Monthly deposits showing income flow pre-crash vs post-crash.
Example: Average $8,000/month deposits January-May 2024. June-September 2024: $2,000/month average. $6,000/month × 4 months = $24,000 loss.
Client and contract documentation:
Lost contracts due to inability to perform:
- Client emails canceling contracts
- Proposals that weren’t completed
- Projects that were delayed or handed to competitors
Example: Landscaping contractor lost 3 major spring contracts ($15k, $12k, $8k) because couldn’t perform physical labor during recovery = $35k documented loss
Business ledger (if maintained):
Income and expense tracking showing pre/post comparison.
CPA or bookkeeper prepares summary:
- Q1 2024 net income: $22,000
- Q2 2024 net income: $5,000 (crash occurred May 15)
- Attributable loss: $17,000 (assuming Q2 would match Q1 trend)
Accountant letter (recommended):
CPA reviews records and provides professional opinion:
- Pre-crash income average
- Post-crash income reduction
- Explanation that reduction is attributable to crash, not market factors
Insurance company challenges:
“Income was already declining” → Tax returns show stable/increasing trend for years prior
“Seasonal business, income naturally lower this period” → Show same-period income from prior years, demonstrate crash year is outlier
“You underreported income on taxes” → Can’t recover unreported income (don’t admit tax evasion in personal injury claim)
“Market downturn, not crash” → Industry data showing market stable, your business uniquely affected
Gig Economy: Platform Data and 1099s
Uber, Lyft, DoorDash, Instacart, TaskRabbit, Upwork – gig platforms create unique proof challenges.
Required documentation:
App earnings screenshots (weekly):
Most gig platforms show weekly earnings summary. Screenshot:
- 8-12 weeks pre-crash (establishes baseline)
- Each week post-crash (shows reduction)
Example: Uber driver
- Pre-crash average: $1,200/week (April-May 2024)
- Post-crash Week 1-4: $0/week (unable to drive)
- Post-crash Week 5-12: $300/week (returned at reduced capacity)
- Loss: $900/week × 12 weeks = $10,800
Platform year-end statements:
Most platforms provide annual earnings summary (similar to W-2 but for 1099 contractors). Shows total earnings for tax year.
Use to establish:
- Annual income pre-crash
- Post-crash annual income (following year)
- Income reduction
1099 forms:
Tax form showing total earnings from platform. Filed with IRS, less easily disputed than self-reported screenshots.
Mileage logs (if maintained):
Some drivers track mileage for tax deductions. Mileage logs showing:
- Pre-crash miles per week
- Post-crash miles per week (reduced or zero)
Supports claim that inability to drive reduced income.
Alternative platform work (if applicable):
If you switched to less-physical gig work post-crash:
- Pre-crash: Rideshare driving ($1,200/week)
- Post-crash: Online surveys, remote gigs ($200/week)
- Document both, show forced career change due to injuries
Platform correspondence:
If you notified platform you were unable to work:
- Email or in-app message explaining injury
- Platform response (if any)
- Deactivation notice (if account was deactivated due to inactivity)
Insurance company challenges:
“Gig income is volatile, maybe you just had bad weeks” → Show 8-12 week pre-crash average, demonstrate consistency
“Platform data is self-generated, unreliable” → 1099 forms filed with IRS, verifiable by insurer through tax return authorization
“You could work, you chose not to” → Medical records showing restrictions incompatible with gig work (can’t sit long periods = can’t rideshare, back injury = can’t deliver heavy packages)
Calculation example:
DoorDash driver:
- Pre-crash earnings: $1,000/week average (Jan-May 2024, 20 weeks)
- Total: $20,000 over 20 weeks
- Post-crash earnings: $200/week average (June-Sept 2024, 16 weeks)
- Total: $3,200 over 16 weeks
- Expected earnings (if no crash): $1,000/week × 16 = $16,000
- Loss: $16,000 – $3,200 = $12,800
Commissioned Sales: Reports and Structure
Salespeople paid primarily by commission face documentation challenges similar to gig workers.
Required documentation:
Sales reports:
Monthly or quarterly reports showing:
- Sales volume
- Commission earned
- Pre-crash average
Example: Sales rep averaging $18,000/month commissions (Jan-May 2024). June-August 2024: $4,000/month average due to inability to make sales calls, attend meetings, travel.
Loss: $14,000/month × 3 months = $42,000
Employer letter confirming:
- Commission structure (percentage, tiers, bonuses)
- Pre-crash performance
- Post-crash performance
- Lost accounts or territories due to absence
Client documentation:
Lost accounts specifically attributable to crash:
- Client emails requesting different rep during your absence
- Accounts reassigned permanently
- Contracts lost to competitors during recovery
Return-to-work at reduced capacity:
If you returned but can’t perform at pre-crash level:
- Current commission earnings
- Medical restrictions preventing full performance (can’t travel, can’t work full hours)
- Comparison to pre-crash earning level
Insurance company challenges:
“Commission income naturally fluctuates” → Show multi-year trend, demonstrate crash year is outlier
“Lost accounts unrelated to absence” → Client correspondence showing they left specifically due to unavailability during recovery
“Could have worked remotely” → Medical records showing cognitive impairment (TBI), pain preventing concentration, medications affecting performance
Future Earning Capacity: Vocational Expert Testimony
Most valuable wage loss category but most expensive to prove. Applies when permanent disability prevents returning to pre-crash occupation.
When it applies:
- Career change forced (construction to desk work)
- Reduced work hours (40 hours/week to 20 hours/week permanently)
- Lower-paying work (skilled trade to unskilled labor)
- Complete disability (can’t work at all)
Vocational expert role:
Licensed vocational rehabilitation counselor evaluates:
- Pre-crash earning capacity:
- Occupation
- Earnings history
- Skills and education
- Career trajectory (promotions, raises)
- Post-crash functional limitations:
- Medical records review
- Treating physician restrictions (no lifting >20 lbs, no climbing, no prolonged sitting)
- Activities of daily living assessment
- Labor market analysis:
- What jobs you can still perform given restrictions
- Wage ranges for available jobs
- Local labor market conditions
- Wage differential calculation:
- Pre-crash earning capacity: $60,000/year
- Post-crash earning capacity: $40,000/year
- Annual loss: $20,000/year
- Work life expectancy:
- Years remaining until retirement (typically age 65-67)
- Example: Age 45, 20 years remaining
- Gross loss: $20,000 × 20 = $400,000
- Present value reduction:
- Future money worth less than money today
- Economist calculates present value discount
- Typical reduction: 40-60% depending on years and discount rate
- Example: $400,000 gross reduced to ~$300,000 present value
Cost:
Vocational expert evaluation: $3,000-5,000
Economist present value calculation: $1,500-3,000
Total: $4,500-8,000
Worth it for claims with significant future wage loss (permanent disability, young victim, high-earning occupation).
Example scenario:
Pre-crash: Roofer, age 40, earning $70,000/year
Injury: Back injury (L4-L5 herniation requiring fusion). Permanent restrictions: no climbing, no repetitive bending, no lifting >25 lbs.
Post-crash earning capacity: Vocational expert identifies available work:
- Construction estimator (desk-based): $45,000/year
- Building inspector: $48,000/year
- Construction supply sales: $42,000/year
Realistic post-injury earning capacity: $45,000/year (midpoint of available options)
Calculation:
- Annual loss: $70,000 – $45,000 = $25,000/year
- Work life expectancy: 25 years (age 40 to 65)
- Gross loss: $25,000 × 25 = $625,000
- Present value (at 3% discount): ~$475,000
Insurance company challenges:
Defense vocational expert argues:
- You can earn more than $45,000 (points to $55,000 jobs you “could” do)
- Work life expectancy shorter (argues retirement at 60, not 65)
- Present value discount should be higher (5% instead of 3%)
Competing experts = settlement negotiation or jury decides.
When NOT to pursue future wage loss:
- Injuries temporary (returned to same work)
- Close to retirement (limited years of loss)
- Already unemployed or retired
- Cost of experts exceeds likely recovery
Documentation Protocol: Act Now
Lost wage documentation degrades over time. Act immediately.
W-2 employees:
Request employer letter within first month post-crash. Don’t wait until settlement negotiation (supervisor may have left, HR may not have records, employer may be less cooperative).
Self-employed:
Pull tax returns immediately. Download bank statements monthly. Document each lost contract or client as it happens. Don’t try to reconstruct 18 months later.
Gig economy:
Screenshot earnings weekly. Platforms may not retain detailed history beyond tax year. Download annual statements when available. Request data export if platform offers it.
All employment types:
If permanent limitation is suspected (doctor says “this might be permanent”), request vocational consultation early. Vocational reports take 4-8 weeks. Don’t wait until month 22 of 24-month statute to realize you need $5,000 expert report.
Documentation checklist by employment type:
W-2:
- [ ] Employer letter (position, rate, dates missed, hours, PTO, status)
- [ ] Pre-crash paystubs (3 months)
- [ ] Post-crash paystubs (showing zero/reduced earnings)
- [ ] Return-to-work documentation
Self-employed:
- [ ] Tax returns (2-3 years)
- [ ] Business bank statements (6 months pre, all post-crash)
- [ ] Client/contract documentation (lost work)
- [ ] Business ledger (income/expense pre vs post)
- [ ] Accountant letter (optional but helpful)
Gig economy:
- [ ] App screenshots (8-12 weeks pre-crash, weekly post-crash)
- [ ] Year-end platform statements
- [ ] 1099 forms
- [ ] Mileage logs (if maintained)
- [ ] Alternative work documentation (if switched platforms/work type)
Commissioned sales:
- [ ] Sales reports (pre-crash average, post-crash actual)
- [ ] Employer letter (commission structure, performance)
- [ ] Client documentation (lost accounts)
- [ ] Return-to-work capacity documentation
Future earning capacity (if permanent):
- [ ] Vocational expert evaluation ($3-5k)
- [ ] Economist present value calculation ($1.5-3k)
- [ ] Medical records with permanent restrictions
- [ ] Pre-crash earnings documentation (any employment type above)
Lost wage claims require immediate documentation. W-2 employees: request employer letter today stating position, rate, dates missed, total hours, PTO used, current status. Self-employed: pull tax returns, bank statements, client records showing pre/post comparison. Gig economy: screenshot app earnings weekly, download year-end 1099. All types: if permanent limitation suspected, request vocational consultation early (expensive but necessary for future earning capacity claims). Don’t wait until settlement negotiation – documentation degrades, witnesses forget, records get purged. Build wage loss file now, while evidence is fresh.
Disclaimer: This article provides general information about Georgia motorcycle accident law and is not legal advice. Every case is different. Consult a qualified Georgia motorcycle accident attorney to discuss your specific situation. Nothing in this article creates an attorney-client relationship.