How to Show Proof of Your Income
There are some activities that you cannot get involved in if self-employed unless you show proof of your income, you can click here for more info. 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. In this article, you will learn some of the various ways you can use to show proof of your income.
First, you can show proof of your income by the use of bank statement. One way you can use to show proof of income is by the use of 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. 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.
Another important document you can use to show proof of income is 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. Getting your tax return document is easy, you can get it online 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. Many people think that it is only the civil servants that can use pay stubs and W-2 system, but the reality is that even the self-employed individuals can use it 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 using W-2, it is possible to generate pay stubs weekly or monthly. The documents you generate using the system will act as proof as your income.