How to Provide Evidence 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. So, even the self-employed individual must show proof of their income before they can access some services in the field. In this article, you will learn some of the various ways you can use to show proof of your income.
Bank statement. One way you can use to show proof of income is by the use of 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, if you want to rent an apartment or request loan from any financial institution, you can use your bank statement to show proof of income. 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. Each year, all the citizens of different states are required to file the tax return. The tax return shows individuals income for the whole years. 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. 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. 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. 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. The good thing of using W-2 is that you can generate pay stubs every week or month. 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.
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