How to Prove Lost Wages as a Self‑Employed Person After an Accident (Oklahoma)

Short answer: To prove lost wages as a self‑employed person in Oklahoma you must assemble contemporaneous business records, tax filings, bank statements, client invoices, and other documentation that show the income you actually earned and the income you would have earned but for the accident. You will likely need to show both past (actual) lost earnings and, if applicable, future lost earning capacity. A forensic accountant or business valuation expert often helps translate self‑employment records into a credible damages number.

Detailed Answer — Step‑by‑Step

1. Understand what you can recover

In a personal injury or third‑party liability claim in Oklahoma, a self‑employed person can seek compensation for:

• Past lost earnings (money you actually lost because you could not work).
• Future lost earnings or lost earning capacity (if your injury reduces your ability to earn going forward).
• Related business losses (lost contracts, subcontractor payments, costs to hire replacement help).

2. Collect primary income proof

Start with official financial records that show what your business earned and what you personally took home:

• Tax returns (federal returns and Oklahoma returns) for several years before the accident. Schedule C, K‑1, or other business schedules are crucial.
• 1099‑MISC / 1099‑NEC or W‑2s if you mix employment income with self‑employment.
• Profit & Loss (P&L) statements and balance sheets for the business.
• Bank statements showing deposits of business receipts and withdrawals for personal/business expenses.
• Invoices, client contracts, and receipts for work you were scheduled to perform but could not because of the accident.

3. Preserve contemporaneous evidence of the interruption

Contemporaneous records are the most persuasive. Collect:

• Work calendars, appointment books, scheduling software entries showing jobs missed.
• Emails or text messages from clients confirming cancellations or postponements.
• Estimates, bids, purchase orders, and subcontractor invoices that show lost opportunity.
• Photos or videos related to the injury and the business interruption (damaged equipment, closed storefront, etc.).

4. Show the counterfactual — what you would have earned

You must show a reasonable, supported estimate of earnings you would have made if the accident had not occurred. Methods include:

• Average net income: use a multi‑year average (e.g., 2–5 years) adjusted for growth or decline.
• Forecasts based on signed contracts or written job offers in place at the time of the injury.
• Historical month‑by‑month or seasonally adjusted revenue comparisons if income varies by season.

5. Account for expenses and taxes

Insurance companies and courts distinguish between gross revenue and net income. Show:

• Business expenses directly saved or incurred because of the interruption (materials, subcontractors, rent).
• Net lost income after deducting variable expenses you would have paid had you worked.
• How taxes, self‑employment taxes, and benefits affect your net loss.

6. Use expert help when necessary

For complex businesses or when an insurer disputes your numbers, a forensic accountant or economic damages expert can:

• Reconstruct income from bank deposits and invoices.
• Prepare a damages report that translates business records into lost wages or lost earning capacity.
• Provide deposition or court testimony to support your claim.

7. Show mitigation efforts

Oklahoma claimants have a duty to mitigate losses. Document efforts you made to reduce your losses, such as:

• Delegating work to subcontractors or employees.
• Rescheduling jobs or working fewer hours when medically able.
• Using temporary help or renting equipment and the costs incurred.

8. Prepare a clear damages calculation

Create a concise damages spreadsheet showing:

1. Time period (dates) of lost earnings.
2. Actual income vs. projected income for that period.
3. Expenses saved and additional expenses incurred due to the injury.
4. Net lost income for each period and overall total.

9. Anticipate insurer tactics

Insurers may:

• Ask for more documentation or a release of medical records.
• Offer a quick, low settlement that doesn’t fully compensate future losses.
• Challenge your business records or claim that the loss is speculative.

Well‑organized proof and expert reports reduce these risks.

10. Timing: act promptly

Oklahoma has deadlines (statute of limitations) that can bar a personal injury claim if you wait too long. For most personal injury claims, the time limit is short (commonly two years from the injury). File a claim or consult an attorney early to protect your rights.

Helpful Hints

• Keep originals and make high‑quality copies of tax returns, invoices, and bank records.
• Take screenshots of scheduling apps and save emails/texts in folders labeled with dates and context.
• Use a consistent method to calculate lost income and document every assumption (e.g., “average of 2019–2022 net income, adjusted for 10% growth”).
• If you didn’t keep contemporaneous records, start reconstructing now — gather client lists, bank deposits, and any third‑party evidence (e.g., customers who can confirm canceled jobs).
• Get a written opinion from a CPA or forensic accountant before accepting any settlement that includes lost wages, especially for future losses.
• Consult an attorney early. An attorney can demand documents from the insurer, coordinate experts, and advise on how workers’ compensation (if applicable) interacts with a third‑party claim.
• Document your medical restrictions and the dates you were unable to work or had reduced capacity — medical records link injury to lost income.

When to Talk to an Oklahoma Attorney

Consider hiring an attorney if:

• The amount of lost income is significant or involves future earning capacity.
• An insurer denies responsibility or disputes your documentation.
• Your business is complex (multiple income streams, partners, or pass‑through entities).
• There is a potential overlap with workers’ compensation or other benefits.

Where to Start Right Now

1. Gather the last 3–5 years of tax returns and at least 12–24 months of bank statements.
2. Collect invoices, contracts, calendar entries, and client communications tied to the time of your injury.
3. Make a simple spreadsheet that compares actual income to projected income for the missed periods.
4. Contact a local Oklahoma attorney or CPA experienced with business‑loss damages to review your documents.

Disclaimer: This article explains general legal concepts and practical steps. It is not legal advice and does not create an attorney‑client relationship. Laws and deadlines vary by situation. To understand how Oklahoma law applies to your case, consult a licensed Oklahoma attorney promptly.