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, today, if you want to move into a new apartment, the real estate agents will ask you for proof of income, you can read more now on this homepage. 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. 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 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, you should not be stranded if you have been asked to show proof of your income by any organization, the easy way is use the bank statement. 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. The law of different states in the world, requires every adult citizen to file tax return. The tax return shows individuals income for the whole years. Therefore, one of the important documents that is acceptable in many institutions that require proof of income is the tax return paper. 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.
Also, you can use pay stubs and W-2 to pay yourself if self-employed, and use the records as proof of income. 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. 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.