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 instance, if you want to rent new apartment, some real estate firms will insist of having your proof of income, read more now, or click this page. Apart from the real estate agents, and companies, you cannot request a loan from any financial institution without showing proof of your income. Therefore, even the self-employed people are affected and must provide a legit proof of their income to access various services in the field. Here are the various ways by which one can show proof of income even if self-employed.
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. 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. Each year, all the citizens of different states are required to file the tax return. The tax returns shows a person’s earnings for the whole year. So, the tax return document is one of the legal things one can use to show proof of 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. Getting your tax return document is easy, you can get it online 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. The good thing of using W-2 is that you can generate pay stubs every week or month. The documents generated weekly or monthly from pay stubs can be used as proof of income.
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