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. Besides the real estate agents and firms, the lending facilities also must ask their clients for proof of income before approving the loan. 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. Here are the various ways by which one can show proof of income even if self-employed.
Bank statement. If you want to show proof of your income to any institution, one of the best things to use is the 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. 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.
Another important document you can use to show proof of income is your tax return. 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. So, the tax return document is one of the legal things one can use to show proof of 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. To get your tax return document, download it from your portal at the revenue authority website.
You can also use the pay stubs and W-2 if self-employed. 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 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.