How to Provide Evidence 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 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. Even the financial lending institutions in the field will ask for proof from any client requesting for loan. Therefore, even the self-employed people are affected and must provide a legit proof of their income to access various services in the field. These are some of the various ways one can use to show proof of income.

You can use a bank statement. One of the effective way to show proof of your income is by using 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. Getting bank statement is easy, you can contact your banking service providers, or get it online via the bank’s 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 return will show a citizen’s income for the whole year. So, the tax return document is one of the legal things one can use to show proof of income. Therefore, if you want to borrow money from a lending facility, the other best document to use as proof of income is your tax returns. Getting your tax return document is easy, you can get it online from your portal at the revenue authority website.

The easy way you can use to show proof of your income is by paying yourself if self-employed using pay stubs and W-2. 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. Many self-employed people are advised not to worry themselves with filling 1099, or directing payments to personal accounts, instead, they can use W-2 to pay themselves. After paying yourself using W-2, you can generate the pay stubs weekly or monthly. The documents generated weekly or monthly from pay stubs can be used as proof of income.

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