Can I Recover Lost Wages if a Car Accident Injury Prevents Me From Working?

 Posted on August 12, 2026 in Car Accident

Compensation from a car accident is intended to cover many kinds of damages, including lost wages. Car accident injuries can be serious and require lasting treatment, and having to miss work for some time is a very real possibility in many cases.

Illinois allows injured people to recover income they are forced to forgo while they heal from car accidents. A Palatine, IL car accident lawyer can help you understand if your case qualifies for this kind of compensation in 2026.

What Kinds of Lost Income Can You Recover After an Illinois Car Accident?

"Lost wages" can include more than base pay. Damages may cover:

• Hourly wages or salary for the days you missed
• Overtime you regularly worked (and have evidence you would have continued working)
• Commissions, tips, and bonuses tied to your performance
• Paid time off and sick days you burned while recovering
• Self-employment and contract income
• Employer contributions to retirement or other benefits

Being aware of all the things that can qualify as lost income can help you assess whether you are being offered a fair settlement amount after the accident.

How Is Lost Earning Capacity Different From Lost Wages?

Lost wages and lost earning potential are two different components of possible damages in a personal injury claim.

Lost wages are the numerical amount that you miss while you are actively in recovery. It is a fairly straightforward calculation of the work you must miss while you are healing.

Lost earning potential is longer-term. Injuries from car accidents may result in permanent impairments. Depending on your job, these impairments may prevent you from doing some or all of your work, even after you have recovered as much as possible. In cases like these, you may be compensated for income that you would have been able to earn but no longer can.

Proving lost earning potential usually takes a treating physician’s opinion on permanent restrictions. Sometimes, a vocational or economic analysis will also be performed.

What Documents Do You Need to Recover Lost Wages After an Illinois Car Accident?

Documentation of what you can earn, especially if it goes beyond a regular hourly wage, will strengthen your case for compensation. Gathering the following documents early will give you time to build the strongest case:

• A wage verification letter stating your rate, hours, and missed dates
• Pay stubs from before and after the crash
• W-2s or tax returns from the last few years
• Written work restrictions or an off-work note from your doctor
• For the self-employed, 1099s, invoices, and profit-and-loss statements

Doctors’ inputs are important pieces of evidence. If you stopped working without written restrictions, an adjuster may argue that you chose to stay home of your own accord.

What if You Shared Fault in a Car Accident in Illinois?

If your actions contributed to the accident, your damages will typically be reduced. Under 735 ILCS 5/2-1116, your damages are reduced by your percentage of fault. You are barred from recovery if you’re found more than 50 percent responsible.

Even if your damages are reduced, however, what you do recover will not be taxed the way gross income would be. Federal law 26 U.S.C. Section 104(a)(2) prevents damages (other than punitive damages and interest) received on account of personal physical injuries from being taxed as gross income.

How Long Do You Have to File a Personal Injury Claim in Illinois?

Most Illinois injury suits must be filed within two years from the date of the injury under 735 ILCS 5/13-202. Missing that deadline usually ends the claim no matter how strong the evidence is, so speak with a lawyer well before the two years run out.

Call a Rolling Meadows, IL Car Accident Lawyer Today

Lost wages or earning potential can make up a substantial part of a personal injury claim. Our Palatine, IL personal injury attorneys have many decades of combined experience. We can help you value your claim and fight for fair compensation.

Call Newland & Newland, LLP at 847-797-8000 today to schedule your free consultation with an experienced lawyer. We have recovered millions of dollars in verdicts and settlements for injured clients like yourself.