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 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. So, even the self-employed individual must show proof of their income before they can access some services in the field. These are some of the various ways one can use to show proof of income.
Bank statement. One of the effective way to show proof of your income is by using 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. So, if a real estate agent or a lending institution ask you of proof of income, do not worry, use your bank statement. Accessing your bank statement is not difficult, you can get a print one from your banking service provider, or download online from 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 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. 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. Getting your tax return document is easy, you can get it online from your portal at the revenue authority website.
Also, you can use pay stubs and W-2 to pay yourself if self-employed, and use the records as proof of income. 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. After paying yourself using W-2, you can generate the pay stubs weekly or monthly. The documents you generate using the system will act as proof as your income.