How to Show Proof of Your Income

Self-employed people cannot take part in some activities without showing proof of their income, you can read more here, or visit this website to know more about these information. For example, there are many real estate agents that ask for proof of your income before searching for an apartment for you, view here for more. Apart from the real estate agents, and companies, you cannot request a loan from any financial institution without showing proof of your income. Therefore, even if you are self-employed, you must find ways to show proof of income to gain access to various services in the market. These are some of the various ways one can use to show proof of income.

You can use a bank statement. If you want to show proof of your income to any institution, one of the best things to use is the bank statement. If you are have been making deposits into your account whether self-employed, the bank as all the record of your account since it was opened. Therefore, if you want to rent an apartment or request loan from any financial institution, you can use your bank statement to show proof of income. It is easy to get a bank statement, for printed ones consult your banking service provider, but you can still download it via the bank’s website, or app.

Use your tax return. All individuals residing in any state are required to comply with law that states that citizens are to file their tax return annually. The tax return shows individuals income for the whole years. Therefore, one of the important documents that is acceptable in many institutions that require proof of income is the tax return paper. For that reason, do not worry if you want to borrow a loan from any lending institution an asked for proof income, use your tax return paper. To get your tax return document, download it from your portal at the revenue authority website.

Also, you can use pay stubs and W-2 to pay yourself if self-employed, and use the records as proof of income. Majority of people think that only individuals employed by the government should use pay stubs and W-2, but even the self-employed people can pay themselves using this system. It is advisable that instead of taking time filling out 1099, or directing payments to your bank account, it is better to pay yourself using W-2. The good thing of using W-2 is that you can generate pay stubs every week or month. So, the documents you will get from this system can act as your proof on income when needed by your lending institution, or real estate agent.