Reasons You May Need to Disclose Income Tax Returns in a Car Accident Case

Tax Returns Used in a Car Accident Injury CaseWhen filing a claim for compensation after an auto collision in Norfolk or Virginia Beach, you may be surprised if the insurance company requests that you provide them with your income tax returns. Do you have to turn them over? An experienced car accident lawyer can advise you whether giving your tax returns to the insurance adjuster will be necessary and can go up against the insurance company so that you receive the maximum recovery in your settlement.

If you prove the other motorist’s negligence caused your car crash, you are entitled to compensation for your medical expenses, lost wages, and pain and suffering. You would also be entitled to future damages if you suffered a long-term injury.

Why Tax Returns May Be Needed in a Virginia Car Accident Case

The insurance company often requests income tax returns when a car accident victim’s claim is litigated. However, they can also help your attorney prove the damages you deserve or assist in settling your case out of court. Here are reasons why your tax returns may be needed:

  • Self-employment. If you are self-employed, your income tax returns will establish your income over the last several years. This can help you prove the past and future wage losses you deserve.
  • Varying wages. If you have changed jobs or your work hours vary, an attorney may want to review several years of income tax returns to determine an average yearly income.
  • Lost earning capacity damages. You would be entitled to lost earning capacity damages if you suffered a permanent injury requiring you to change jobs, accept a pay reduction, or become permanently disabled. An economic expert witness may use your income tax returns to help calculate the lost earning capacity damages you should receive.

When Providing Tax Returns Would Not Be Necessary

Income tax returns may not be needed in some car accident cases. If you have fully recovered from your injuries and have a stable job with consistent wages, you can provide your paystubs or W-2s to prove the amount of your wage loss damages.

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