There are many situations where you need to prove income, but how can you do it? This guide shows how to show proof of income in 5 simple ways.
More than 97 million people in the United States filed a federal tax return last year. Tax returns are a great resource because they supply crucial information that is needed for large purchases.
Verifying your income will likely come up at some point in life. Whether you are renting a home, buying a house, or getting a new vehicle, you will need to be prepared.
Continue reading to discover how to show proof of income when you work independently or have no documentation!
- Pay Stubs
Pay stubs are one of the easiest proofs of income that you can get.
Even if you work as a freelancer or just don’t get pay stubs, you can still make them online. Check out the best pay stub generator free if you need one.
Pay stubs, checks, and slips are given to employees with their paycheck. These pay stubs are often thrown away, but provide valuable income. They are the quickest way of showing your recent and current income, but many people know that these can be forged.
Make sure that if you create your own, you are filling it out accurately and honestly!
- Income Statements
Many people know income statements as W-2s. These are those popular forms that you have to fill out every time you get a new job.
When learning how to show proof of income, you should have these handy.
Employers complete the W-2 form based on your answers. Having this form means that you will have access to your total annual wages paid at that job. If you have more than one job, you should fill out multiple W-2 forms for each job.
Many landlords and bankers use this information to get a full view of your income throughout the year.
- Bank Statements
Bank statements are another easy way of showing your income when you are in a pinch.
By either going to your branch or logging in online, you can get printed copies of every month for your bank accounts. This is a great way to prove your income because it will display all of your deposits. It will also provide information about your balance that you steadily keep deposited.
Just keep in mind that whoever sees your bank statements will have a full view of your spending habits!
- Tax Returns
Federal income tax returns are another way to prove your income.
The form 1040 has a section designated for your annual income. You can use this number to verify that you have an income. Many times people will ask for copies of your tax returns, or you can even email them.
- Written Letters
If you have a close relationship with your boss, or just need another way to prove your income, you can simply have them write a letter.
In the letter, your supervisor should review how long you have been employed with the company and your salary. This information can prove that you are indeed employed and have a steady income.
This is perfect for people that don’t use bank accounts or keep pay stubs!
Learn How to Show Proof of Income
By learning how to show proof of income for yourself, you can speed up the processes of getting new purchases and homes.
There are many reasons why you will need to do this if you haven’t already done so. Luckily, you can show your income by sending in pay stubs or income statements, otherwise known as W-2 forms.
If this is not possible for you to get, you can have your supervisor write a professional letter or show your bank statements.
Be sure to check out our blog for more articles about managing finances and proving your income and employment!