Detailed Answer
If you suffer lost wages after an accident in New Mexico, you must document your income carefully. Courts and insurers rely on objective proof of your earnings to calculate your claim. Below are the key records you will need and how they support your lost wage claim.
1. Form W-2 (Wage and Tax Statement)
Your W-2 forms from the year before and the year of the accident show your annual gross wages, federal and state tax withholdings, and Social Security and Medicare contributions. These forms establish a baseline for your typical earnings and help calculate weekly or monthly averages.
2. Pay Stubs and Earnings Statements
Regular pay stubs or payroll reports from your employer provide detailed information on hours worked, regular and overtime pay, bonuses, commissions, and deductions. Pay stubs bridge gaps if your W-2 does not cover partial-year losses.
3. Form 1099 (Independent Contractor Income)
If you perform freelance or contract work, you should gather all relevant 1099-MISC or 1099-NEC forms. These IRS statements document nonemployee compensation and show income you lost when you could not work due to injury. See IRS: About Form 1099-NEC.
4. Employer Verification and Time Records
Obtain a written statement from your employer verifying your average hours, pay rate, and employment status at the time of the accident. Collect time cards, scheduling logs, or project reports to verify hours you could not work.
5. Federal and State Tax Returns
Personal income tax returns (Form 1040) for the past two years corroborate your W-2 and 1099 income. They also reveal deductions that may affect your net lost wage calculation.
6. New Mexico Law on Lost Wage Damages
Under New Mexico law, a personal injury claimant must prove actual economic loss to recover lost wages. See NMSA 1978, § 41-4-16 (measure of damages) at https://www.nmlegis.gov/lcs/statutes/NMSA/Title_41/Chapter_004. Courts apply averages from documented earnings to calculate weekly or monthly losses from the date of injury until return to work.
Helpful Hints
- Request certified or notarized copies of W-2s and tax returns from the IRS using Form 4506.
- Keep original pay stubs and back up digital copies.
- Ask your employer for a signed employment verification letter detailing pay and hours.
- Document unpaid breaks or missed shifts with calendar entries or correspondence.
- Track medical leave paperwork and disability benefit statements separately.
- Organize all documents chronologically to simplify calculations.
- Work with a qualified attorney or accountant to ensure accuracy.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney in New Mexico to evaluate your specific situation.