Kibbey Wagner | May 21, 2025 | Personal Injury

If you have been hurt in an accident, you might be unable to work for some period of time because of your injuries. Some victims are never able to return to work in the same capacity.
Victims who have been injured in a car accident or some other type of accident may be entitled to recover for both their loss of income and loss of earning potential. Keep reading below to learn all the key differences between these two types of damages.
What Is Loss of Income?
Loss of income occurs when a victim is unable to work because of their injuries. This could be a temporary or even a permanent situation. The amount of the loss is usually pretty easy to calculate. To calculate a loss of income, you need to multiply your hourly or daily pay rate by the number of hours or days that you are out of work.
There are a few different types of lost income that may be claimed. Those include:
Actual Lost Wages
Actual lost wages are present after a victim misses time from work because of their injuries. Paystubs, tax returns, or statements from your employer may be used to prove the amount of these damages. Remember that you might also be able to claim time missed from work because of doctor’s appointments or other required medical treatments related to your injuries.
Future Lost Wages
If your doctor has already told you that you will be unable to work for a certain period of time, you can get compensation for those future lost wages. The calculation for the amount will be the same as for your prior lost wages. Plus, you will likely need medical records or your doctor’s testimony proving how long you are expected to miss work.
Self-Employed Lost Income
Proving lost wages if you are self-employed can be a little more challenging. However, you can still provide invoices, tax returns, or other evidence to show your average earnings. This can then be used to calculate how much money you lost by missing time from work.
Remember that actual lost wages and future lost wages relate to a specific dollar amount that has been lost because of your injury. If you regularly receive overtime payments, you can claim missed overtime as part of your lost wages as well.
What Is Loss of Earning Potential?
Loss of earning potential is a little more complex. This typically applies in cases involving severe or catastrophic injuries. Loss of earning potential compensates a victim for the money they could have earned if it were not for their injuries.
This figure is somewhat subjective, and some factors that may go into the calculation include:
- The victim’s age and health prior to the accident
- The victim’s education level
- Expert testimony
- Work history and the likelihood of future promotions
- Expected life expectancy before and after the accident
- Exactly how the victim’s work performance will be affected
- How long until the victim reaches retirement age
- How long the victim is expected to be incapacitated
Expert testimony is often crucial to proving the value of your loss of earnings potential. Vocational experts and financial experts are often needed to testify about the victim’s potential earnings over their lifetime had they not been injured.
For instance, a victim who suffers a brain injury might miss out on several promotions and pay raises throughout their career. In most cases, it is a good idea to get help from an experienced personal injury lawyer who can help you put an accurate value on these damages.
How Long Do I Have to File a Lawsuit for Loss of Earnings Potential?
If you have been hurt in an accident, Florida law typically gives you two years from the date of the accident to file a personal injury lawsuit for damages. This includes all claims for lost wages and loss of earnings potential.
Missing the deadline can have dire consequences. Failure to file your lawsuit before the clock runs out can cause you to be completely barred from recovering any compensation for your injuries.
Keep in mind that there are some special circumstances that can affect the deadline associated with your case. This is why you should always get help from an experienced personal injury lawyer after an accident.
Contact Kibbey Wagner Injury & Car Accident Lawyers For Help Today
For more information, please contact the Stuart, Port St. Lucie, or Palm Beach Gardens personal injury law firm of Kibbey Wagner Injury & Car Accident Lawyers to schedule a free consultation today.
We proudly serve Martin County, St. Lucie County, Palm Beach County, and its surrounding areas in Florida:
Kibbey Wagner Injury & Car Accident Lawyers Stuart
73 SW Flagler Ave
Stuart, FL 34994
(772) 444-7000
Kibbey Wagner Injury & Car Accident Lawyers Port St. Lucie
1100 SW St. Lucie West Blvd. Ste 202
Port St Lucie, FL 34986
(772) 247-3374
Kibbey Wagner Injury & Car Accident Lawyers Palm Beach Gardens
300 Ave of the Champions Ste 170
Palm Beach Gardens, FL 33418
(561) 944-4000