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.
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. Therefore, you should not be stranded if you have been asked to show proof of your income by any organization, the easy way is use the bank statement. Getting bank statement is easy, you can contact your banking service providers, or get it online via the bank’s app.
Secondly, you can use your tax return slip to show proof of your income. 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. Therefore, one of the important documents that is acceptable in many institutions that require proof of income is the tax return paper. 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. If you want to get a tax return document, it is simple, download it from your portal at the website of the revenue collection authorities.
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. 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 you generate using the system will act as proof as your income.