How to Show Proof of Your Income
If you are self-employed, there are some things that you cannot do without showing proof of your income, click here to learn more. For instance, if you want to rent new apartment, some real estate firms will insist of having your proof of income, read more now, or click this page. 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 the self-employed people are affected and must provide a legit proof of their income to access various services in the field. Here are the various ways by which one can show proof of income even if self-employed.
You can use a bank statement. One way you can use to show proof of income is by the use of bank statement. Even if you are self-employed, the savings you have, has been going to the bank, and the institution has all the record since the account was opened. So, if a real estate agent or a lending institution ask you of proof of income, do not worry, use your bank statement. 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. The law of different states in the world, requires every adult citizen to file tax return. The tax returns shows a person’s earnings for the whole year. 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.
You can also use the pay stubs and W-2 if self-employed. Most people think that only civil servants can use pay stubs and W-2, but the truth, even self-employed individuals can use this system to pay themselves. Therefore, instead of filling out a 1099, or directing payments into your bank, you can pay yourself using W-2. After paying yourself using W-2, you can generate the pay stubs weekly or monthly. 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.