Once you have cleared the hurdles of proving liability and proving your injuries, you must then prove those injuries kept you from earning your living and for how long. A statement from a knowledgeable attending physician is usually sufficient to document your inability to work and for what period of time.
If you can provide such documentation to the other party’s insurance adjuster, you would then be entitled to reimbursement of your lost wages. You would then have to prove how much income you have lost. A statement from your employer should do the job. However, if you are self-employed, you may be required to submit documentation much the same as you would if you were applying for a loan.
You are owed reimbursement of your net income (after taxes). Under IRS code, the monies you receive from the insurance company are classified as an indemnification and are not subject to income tax.