How to Seek Compensation for Lost Wages After a Pedestrian Accident?

Pedestrian accidents can leave people with severe injuries that prevent them from working. Many victims worry about how to cover their bills without a paycheck.

In this situation, you may wonder how to seek compensation for lost wages after a pedestrian accident. Georgia law allows injured pedestrians to recover their financial losses if someone else’s negligence caused the accident.

To ensure you recover the wages you’re owed, it’s important to build a strong claim. This requires documentation, a clear understanding of Georgia’s personal injury system, and some patience as your case progresses. If you’ve been involved in a pedestrian accident, our experienced Augusta pedestrian accident lawyers can help guide you through the process, ensuring you get the compensation you’re entitled to for lost wages and other damages.

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Start With Your Accident Report

One of the first steps to recovering lost wages is to prove the accident occurred and that someone else was at fault. Police reports play a key role in this process. After the accident, law enforcement should have created an official report.

This document details what happened, including witness accounts, involved parties, and potential citations issued. The accident report can tie your injuries to the accident and establish who may have been at fault.

Insurance adjusters and legal teams often review this document when deciding on claims. As soon as possible, request a copy from the local law enforcement agency that responded to the scene.

Get Thorough Medical Documentation

Your medical records can determine whether you qualify for lost wage compensation. To recover wages, you must show your injuries made it impossible for you to work.

Georgia law allows injury victims to seek compensation for income lost during recovery periods, but clear evidence is key. Visit a doctor immediately after the accident and follow their recommended treatment plan. Ask your healthcare provider for documentation explaining the severity of your injuries and how they affect your ability to work.

For example, a doctor may outline limits on how much you can lift, how long you can stand, or whether driving is safe. Employers and insurance companies look at these medical opinions when evaluating wage loss claims.

Collect Proof of Your Income

Accurate proof of income is essential when asking for lost wages. Whether you’re employed full-time, part-time, or self-employed, you’ll need documentation showing how much money you would have earned during the recovery period.

For traditional employees, you can use:

• Pay stubs
• Tax returns
• Direct deposit records
• A letter from your employer confirming your wages and hours

For self-employed individuals, the process is a little different. You may need to provide:

• Business records
• Contracts or invoices
• Bank statements verifying income patterns
• Tax filings

If you work multiple jobs, make sure to include documentation for each source of income to show the full amount you’ve lost.

Calculate Lost Benefits

Many people don’t realize they can recover more than just their regular paycheck after a pedestrian accident. If your employer provides benefits, such as paid time off (PTO), sick leave, or commissions, you may have lost access to these perks while recovering.

Georgia law allows victims to include the value of those benefits in a lost wage claim. For example, if you used PTO to cover unpaid days during recovery, calculate the dollar amount of those hours and include it in your claim. Similarly, if you’re missing out on commission because you’re unable to work, make sure to include an estimate of what you could have earned.

Consider Future Lost Income

People with severe injuries may lose income not just in the short term, but also over months or years. For example, someone with a permanent disability may be unable to return to their previous job.

Georgia law allows injury victims to pursue compensation for future lost wages in addition to past income.

To calculate future lost wages, you may need to show:

• The extent of your injuries and their long-term effects
• Your previous income levels
• How likely you are to return to work in the same capacity

Medical opinions can help establish the severity of your injuries, while vocational assessments may determine your earning potential going forward. Although it can take time to gather all this evidence, including future wages increases the total compensation you can recover.

File a Claim Against the At-Fault Party

Under Georgia law, if someone else caused your pedestrian accident, you can file a claim against their insurance company to recover lost wages. Georgia is an at-fault state, meaning the person who causes a car or pedestrian accident must pay for the damages.

For example, if a distracted driver hit you in a crosswalk, their auto insurance policy would likely cover your claim.

Most policies include some or all of the following coverage types:

• Bodily injury liability coverage for medical bills and wage losses
• Uninsured/underinsured motorist coverage if the driver has little or no insurance
• PIP coverage for medical expenses and lost wages (if applicable)

Keep in mind that a claim for lost wages is a separate process from filing for property damages or pain and suffering. Include detailed paperwork supporting your wage loss, and submit it directly to the at-fault driver’s insurance company.

Know Georgia’s Rules About Negligence

Fault is central to recovering lost wages in Georgia. If the at-fault driver or another party caused your accident through negligence, they bear responsibility for your losses. However, Georgia uses comparative negligence, meaning you cannot recover compensation if you were 50% or more at fault for the accident.

For example, if you were jaywalking at the time of the accident, the insurance company might argue you contributed to the situation. A court could reduce your compensation based on your percentage of fault. This makes it critical to gather strong evidence showing who was responsible and why.

Keep Track of Deadlines

Pedestrian accident victims must file claims within specific deadlines under Georgia’s statute of limitations. You must file a lawsuit two years from the accident date for most personal injury cases, including wage loss claims.

Failing to meet this deadline could prevent you from recovering any damages.

It’s best to start gathering documents and filing your claim as early as possible. This way, you have time to address any disputes or information requests without missing the deadline.

Prepare for Potential Disputes

Not all wage loss claims go smoothly. Insurance companies may try to minimize or deny payments, even when your paperwork is thorough.

Common reasons insurers dispute wage claims include:

• Lacking documentation proving lost income
• Disagreements about whether the injuries truly prevent work
• Claims that the victim was partially at fault

If you face pushback, respond promptly with additional records or clarification. Keeping copies of every communication and paperwork can help resolve disputes faster.

Consider Additional Compensation

Lost wages are just one piece of the compensation injury victims can seek after a pedestrian accident. Georgia law allows you to recover damages for:

• Medical treatment costs
• Physical therapy and rehabilitation
• Pain and suffering
• Reduced quality of life

Including all your losses increases the overall value of your claim and ensures you’re fairly compensated for everything the accident has taken from you.

Speak With an Advocate

If your lost wage claim feels too complicated or you need help negotiating a fair payout, you don’t have to handle the process alone. Working with someone who knows Georgia accident law and insurance claims can make the process more manageable.

Tax Implications of Lost Wage Compensation

When recovering lost wages after a pedestrian accident, it’s natural to wonder if your compensation will be subject to taxes. Understanding the tax implications of lost wage compensation in Georgia can help you plan accordingly and avoid surprises when tax season rolls around. While some portions of a settlement might be taxable, others are not. Knowing the difference can prevent confusion and ensure you comply with tax laws.

What parts of a settlement are taxable?

Lost wages are treated differently than other types of compensation in a personal injury settlement. Since lost wage payments are intended to replace the income you would have earned if you weren’t injured, it is generally considered taxable income under federal tax laws.

This means just like your paycheck, the settlement amount for lost wages could be subject to income tax, Social Security tax, and Medicare tax.

For example, if your settlement reimburses you for four months’ worth of income you missed due to your accident, the government may view that as regular income, even though you didn’t physically work to earn it. When filing your state and federal tax returns, you’ll typically report it as income.

What parts of a settlement are not taxable?

Unlike lost wages, other portions of your personal injury settlement are often non-taxable under federal and Georgia state law. These usually include compensation for:

• Medical expenses
• Physical therapy and rehabilitation costs
• Pain and suffering (if not related to lost income)
• Loss of quality of life

For instance, if your settlement includes reimbursement for hospital bills or therapy sessions resulting from your injuries, you won’t need to pay taxes on that amount.

However, it’s important to note that if you deducted those medical expenses on a previous tax return, you may have to report them as taxable income when you receive your settlement.

Practical Advice for Managing Tax Obligations

It’s a good idea to take some proactive steps to prepare for any tax obligations related to your settlement and avoid unexpected liabilities.

Here’s what you can do:

1. Request an itemized breakdown
   When you receive your settlement, ask for a detailed breakdown showing how the total amount is divided. This should outline the portions allocated for lost wages, medical expenses, and other damages. Having this information makes it easier to determine which parts of the settlement are taxable.
2. Set aside funds for taxes
   If a portion of your settlement is taxable, set aside some of that money to cover your tax bill. Talk to a professional to estimate how much you might owe based on your income level and Georgia tax rates.
3. Keep detailed records
   Save all settlement paperwork, including the breakdown, receipts for expenses, and correspondence about the claim. Accurate records can provide clarity if you’re audited or need to double-check your tax filings.
4. Consult with a tax professional
   A tax advisor or accountant with knowledge of Georgia laws can help you determine the taxable portions of your settlement and recommend strategies to manage your obligations effectively. They can also explain deductions you may qualify for to reduce your overall tax burden.

Why it’s important to understand tax implications

Failing to account for taxes on lost wage compensation can leave you unprepared when filing with the IRS or Georgia Department of Revenue. By understanding which portions of your settlement are taxable and planning, you can confidently handle your finances and avoid unnecessary stress.

Dealing with taxes after a personal injury settlement might feel like one more thing to worry about, but taking the time to understand your obligations is worth it in the long run.

With a solid plan and the right guidance, you can ensure that you’re handling your settlement responsibly and getting the most out of your recovery.

Call the Hawk Firm for Help Today

If you’ve been injured in a pedestrian accident and need help getting the compensation you deserve, The Hawk Firm is here to assist. Call our Augusta personal injury lawyers today at (706) 429-5529 for a free consultation and take the first step toward recovering your lost wages.

Schedule a Free Initial Consultation Today!