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. Even the financial lending institutions in the field will ask for proof from any client requesting for loan. 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. Here are the various ways by which one can show proof of income even if self-employed.
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. 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. 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 returns shows a person’s earnings for the whole year. Tax return document is one of the documents that is accepted in many institutions as proof of individual’s income. So, in case you want to borrow money from any institution, one of the best document to use as the proof of income is 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. 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. 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.