How to Provide Evidence of Your Income
Self-employed people cannot take part in some activities without showing proof of their income, you can read more here, or visit this website to know more about these information. 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.
You can use a bank statement. One of the effective way to show proof of your income is by using 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.
Secondly, you can use your tax return slip to show proof of your income. The law of different states in the world, requires every adult citizen to file 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. Therefore, if you want to borrow money from a lending facility, the other best document to use as proof of income is your tax returns. 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. 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 generated weekly or monthly from pay stubs can be used as proof of income.