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. 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. 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. 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. The law of different states in the world, requires every adult citizen to file tax return. The tax return shows individuals income for the whole years. 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. 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. 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.