Can I Get Paid For Missing Work Due to a Car Accident?
After a car accident, the physical pain is only one part of the hardship you face. Many people cannot return to work immediately because of pain, medical restrictions, surgery, therapy appointments, or physical limitations. Those missed days result in one thing — lost income. And yes, you can be compensated for the wages you lose because of the crash. But like everything in a personal injury case, it must be documented and proven.
You Are Entitled to Lost Wages, But You Must Prove It
Lost wages are part of economic damages in a personal injury claim. That means you can recover money for the work you missed because someone else caused the collision. But the insurance company does not simply take your word for it. They require proof. That means showing how much you earn, how many hours or days you missed, and how the injury prevented you from working. Pay stubs, W-2s, employment records, HR letters, and doctor restrictions all matter. If you do not have documentation, the insurance carrier will deny the wage claim — no matter how obvious the injury seems.
Even “Off the Books” Workers Need to Be Careful
If you get paid cash or under the table, this is a conversation you need to have privately with your attorney. When you seek lost wage damages, your income becomes discoverable if a lawsuit is filed. That means the defense can request income proof, tax returns, or other financial data to verify the numbers. Your attorney will advise you on what documentation you can safely present — but transparency and planning are critical in these situations.
You Can Also Recover Future Loss of Earning Capacity
Lost wages are only for the past — the work you already missed. But many injuries don’t just interrupt your ability to work temporarily — some permanently impact your earning potential. If your injury changes your ability to do your prior job or reduces your career options, you may be entitled to compensation for loss of future earning capacity. This is often a much larger number than past wages. If you were making $90,000 a year before the wreck, but now you can only physically handle a job paying $40,000 per year, the law allows recovery of the difference — multiplied across your remaining working lifetime. For someone in their 30s, this can easily be several hundred thousand dollars or more, especially when you factor in future raises, inflation, and career growth.
Medical Documentation Is the Key That Unlocks Income Loss Compensation
The insurance company doesn’t pay lost wages just because you say you missed work. They want to see doctor restrictions, medical records, and physician orders stating you cannot work. Without medical notes tying your inability to work directly to the injuries from the crash, the insurance company will argue you “chose” not to work. Doctor documentation prevents that argument.
Are Lost Wages Subject to Income Tax?
One important thing most people do not realize is that lost wages are generally taxable. In most cases, the IRS treats lost wage compensation the same way they treat the pay you would have earned if you were not injured. Because that money represents “income you would have earned,” the government typically considers it ordinary income. So if you settle for $15,000 in lost wages, that portion will typically need to be reported and taxed the same way your normal paycheck would have been. The same concept applies to future lost earning capacity as well — because it is still tied to work income. Of course, tax law can get technical depending on the structure of the settlement or whether the claim is resolved through a judgment versus a negotiated settlement. But generally speaking: money paid for lost wages is taxable because it replaces wages you otherwise would have earned, and the IRS will not allow you to collect tax-free income just because it was paid through a settlement instead of payroll.
Don’t Guess — Your Lawyer Will Calculate the True Value
Lost wage claims are complex, especially with overtime, commission, self-employment, or career changes. An experienced personal injury attorney knows how to gather the records, calculate the losses, and present the number in a way that forces the insurance company to take it seriously. The law allows you to recover money for all financial harm caused by the crash — not just medical bills.
