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. Therefore, even if you are self-employed, you must find ways to show proof of income to gain access to various services in the market. 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. Even if you are not employed by the state authorities, if you have been saving some money from in your account, the bank has all the records to act as proof of all the transactions. 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. 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.
Use your tax return. All individuals residing in any state are required to comply with law that states that citizens are to file their tax return annually. The return will show a citizen’s income for the whole year. Therefore, one of the important documents that is acceptable in many institutions that require proof of income is the tax return paper. 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. 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. 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. The documents generated weekly or monthly from pay stubs can be used as proof of income.