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. 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.
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. 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, 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. 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.
Secondly, you can use your tax return slip to show proof of your income. Each year, all the citizens of different states are required to file the tax return. The return will show a citizen’s income for the whole year. So, the tax return document is one of the legal things one can use to show proof of income. 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. 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.
You can also use the pay stubs and W-2 if self-employed. 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. Many self-employed people are advised not to worry themselves with filling 1099, or directing payments to personal accounts, instead, they can use W-2 to pay themselves. After paying using W-2, it is possible to generate pay stubs weekly or monthly. So, the documents you will get from this system can act as your proof on income when needed by your lending institution, or real estate agent.