Ways You Can 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 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. Besides the real estate agents and firms, the lending facilities also must ask their clients for proof of income before approving the 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. In this article, you will learn some of the various ways you can use to show proof of your income.
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. 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.
Another important document you can use to show proof of income is 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. 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.
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. 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. Therefore, instead of filling out a 1099, or directing payments into your bank, you can pay yourself using W-2. After paying using W-2, it is possible to generate pay stubs weekly or monthly. The documents generated weekly or monthly from pay stubs can be used as proof of income.