How can a self-employed person prove lost income after an injury?
Self-employed people can document lost income with tax returns, Forms 1099, invoices, contracts, appointment calendars, bank records, profit-and-loss statements, payroll records, and evidence of work that was cancelled, delayed, or reassigned. Records from customers, vendors, employees, or an accountant may help show how the business operated before and after the injury.
Gross revenue is not always the same as personal income, so the analysis should account for ordinary expenses, seasonal patterns, business growth, and work that could be postponed rather than lost. In complex or long-term claims, a forensic accountant or vocational expert may be needed to calculate lost earnings or reduced earning capacity.
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