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Detailed Answer

This section explains how a self-employed person in Nevada can prove lost wages after an accident. It covers what courts and insurers expect, what records to collect, how to calculate losses, and steps to protect your claim.

Legal context (Nevada)

In Nevada civil cases you must prove both causation (the accident caused the lost earnings) and damages (the amount of lost earnings) with reasonable certainty. See Nevada Revised Statutes, Chapter 41 for civil actions: https://www.leg.state.nv.us/NRS/NRS-041.html. For rules about evidence, consult the Nevada Evidence Code: https://www.leg.state.nv.us/NRS/NRS-048.html. Note also Nevada’s statute of limitations for most personal-injury claims (start the clock promptly): https://www.leg.state.nv.us/NRS/NRS-011.html#NRS011Sec190.

What you must prove

• That the accident caused you to lose business income or prevented you from working.
• The amount of income you lost (net earnings is usually what matters for self-employed people).
• That your calculation is reasonable and supported by documentation or testimony.

Types of evidence that persuade insurers and Nevada courts

As a self-employed person, courts prefer objective records over estimates. Useful evidence includes:

• Tax returns (Form 1040 and Schedule C) for the prior 2–3 years to show historical net profits.
• Business profit-and-loss statements prepared contemporaneously (internal ledgers, accounting software exports from QuickBooks, Xero, etc.).
• Bank statements showing deposits and cleared client payments.
• Invoices, contracts, client appointment books, delivery logs, or job orders demonstrating scheduled work you could not complete because of the injury.
• 1099s, receipts, canceled checks, and payment processor reports (Stripe, PayPal) to verify revenue.
• Evidence of regular business expenses and the portion that continues while you were out (to calculate net loss rather than gross receipts).
• Pay stubs or contracts if you usually hire employees or subcontractors (to show payroll obligations and mitigation efforts).
• Documentation of any temporary or partial work you did (to offset claimed losses and show mitigation).
• Medical records and doctors’ notes linking your injury to your inability to work.
• Affidavits or sworn statements from clients, vendors, or customers confirming canceled jobs or lost business.
• Photographs, calendars, appointment confirmations, and emails or text messages cancelling or rescheduling work due to the injury.
• Expert reports from accountants or vocational economists for complex or long-term lost-earnings claims.

How to calculate lost wages (practical method)

There is no single formula, but the calculation should show how you arrived at a reasonable dollar amount.

1. Start with historic average net earnings. Use tax returns and profit-and-loss statements to find a typical daily or weekly net income for the months or years before the accident.
2. Determine the period of lost work. Use medical records and physician restrictions to set the start and end dates.
3. Multiply the average daily/weekly net income by the number of workdays/weeks missed.
4. Subtract any income you actually earned during that period (part-time work, emergency jobs, etc.).
5. Adjust for seasonal fluctuations if your business varies throughout the year; compare the same period in earlier years where possible.
6. Account for expenses you avoided because you were not working (materials you did not buy, subcontractor costs you avoided). The claim should reflect net loss, not gross revenue.
7. For future lost earnings, use conservative projections supported by past growth rates, contracts, or expert testimony. Courts require reasonable certainty, not speculation.

When you need expert help

If the amount is large or involves projected future earnings, an accountant or an economic loss analyst can translate business records into an admissible damage model. For smaller, straightforward losses, contemporaneous records plus a clear explanation often suffice.

How courts and insurers evaluate your proof

Decision-makers look for:

• Connection between the injury and lost work (medical records and physician statements help).
• Contemporaneous business records rather than after-the-fact estimates.
• Consistency across documents (bank deposits match invoices and tax filings).
• Evidence you tried to mitigate losses (accepting partial tasks, hiring help, or rescheduling clients).
• Reasonable methods for calculating losses. Courts will reduce speculative figures.

Practical steps to preserve and build your claim

1. Collect and copy: get recent tax returns, bank statements, ledgers, invoices, contracts, client emails, and appointment books. Preserve digital files and screenshots.
2. Keep a contemporaneous diary: note dates you missed work, why you missed it, what clients said, and any income actually earned.
3. Get written statements: ask clients or vendors to confirm canceled jobs or lost revenue in writing or by email.
4. See a doctor and follow treatment: medical records strengthen causation and show the period you could not work.
5. Contact your accountant or bookkeeper early: they can run reports that translate daily revenue into net loss figures.
6. Don’t exaggerate: be conservative and truthful. Inconsistent claims weaken credibility.
7. Preserve originals and maintain a chain of custody for important documents.

Sample, simple calculation (hypothetical)

Example: You average $1,500 net per week based on tax returns and P&L statements. You missed 6 weeks of work because of injury. You earned $200 from occasional work during recovery. Avoided expenses were $100. Net lost wages = ($1,500 × 6) − $200 − $100 = $8,700.

When to talk to a Nevada attorney or accountant

Consider professional help if:

• Your lost-earnings claim exceeds a few thousand dollars and the insurer disputes it.
• Your income is irregular, seasonal, or you have complex tax structures (multiple entities, spouse payroll, etc.).
• You need projections for long-term disability or future lost earning capacity.
• The other side disputes causation or alleges you failed to mitigate.

An accountant can produce financial reports the court will accept. A licensed Nevada attorney can explain tort and evidence rules, negotiate with insurers, and, if necessary, file suit within the time limits under Nevada law (see NRS Chapter 11 on limits: https://www.leg.state.nv.us/NRS/NRS-011.html#NRS011Sec190).

Helpful Hints

• Preserve three years of tax returns and recent bank statements; insurers often request prior years to verify patterns.
• Track daily activity in a simple log while recovering. Timely notes are very persuasive.
• If you are paid in cash, create corroborating records—receipts, written confirmations, or client statements.
• Distinguish gross revenue from net earnings. Taxes, materials, subcontractors, and overhead reduce recoverable lost wages.
• Document any steps you took to reduce losses (outsourcing, rescheduling, temporary work). Courts expect mitigation.
• Get a written medical release tying your inability to work to the injury—this links causation to your economic loss.
• Make copies and back up digital records in multiple places (cloud + local storage).

Disclaimer

This article explains general principles about proving lost wages as a self-employed person in Nevada. It is not legal advice and does not create an attorney-client relationship. For advice specific to your situation, consult a licensed Nevada attorney or a qualified accountant.