Lost Wages & Earning Capacity Calculator — United States

Essential documents: pay stubs from the past 6–12 months, W-2s or tax returns for 2–3 years, employer letter confirming missed work and rate of pay, and for self-employed claimants — Schedule C filings and profit/loss statements. Future earning capacity claims require vocational expert and economist testimony.

Under IRC §104, compensatory damages for physical injuries (including lost wages) received in a personal injury settlement or judgment are generally not taxable. However, punitive damages and damages for emotional distress unrelated to physical injury are taxable.

You can claim projected future loss until your expected retirement age (typically 65–67). The calculation requires: a vocational expert to assess your remaining work capacity, and an economist to calculate the present value of the future income stream. Courts require this expert evidence for large future loss claims.