December 10, 2020 0 Comments Personal Finance

5 Proof of Income Example Documents to Use for Income Verification

Proving your income is relatively straightforward for most people. For instance, many individuals who are looking to purchase a home, take out a loan, etc. will simply provide a copy of their W-2 in order to show how much they make.

This option isn’t applicable to everyone, though, and the alternatives are important to be aware of.

Not quite sure how to begin? We’ve got all the info you need. Let’s explore everything you should keep in mind when it comes to choosing the best proof of income example for your situation.

1. Employer Letters

Although not many people are aware of this option, it’s one of the most effective.

Those who aren’t able to prove their income through traditional methods can ask their employer to write a document that verifies their monthly income. In general, this document will need to be on letterhead, have your employer’s contact information, and may also require a signature.

2. 1099-MISC Forms

Many people have multiple revenue streams that contribute to their overall income. It’s not uncommon, though, for each individual stream to be less than what the other party requires for your situation.

By using a 1099-MISC form, though, you’ll be able to accurately convey how much income you make from all sources
 since this is also the form you’ll use to pay your taxes in this scenario.

3. Pay Stubs

Many employees receive pay stubs from their employers at the end of each pay period. Essentially, these function the same way as a paycheck does when it comes to proving your income.

Not everyone’s employer provides these, though, leaving some individuals with the responsibility to obtain them on their own. Luckily, it’s possible to use a quality paystub generator in order to get your own real check stubs with little issue.

4. Social Security Statement

Those who receive social security most likely don’t have another source of income. But, this doesn’t mean that you can’t use your social security payments as proof that you have the requisite finances.

Simply show your property manager, lender, etc. a copy of your social security statement in order to convey that you have the money available to pursue your endeavor.

5. Tax Returns

Similar to how you can use your 1099-MISC form to prove your income, you can also use your tax returns to do so.

These documents will clearly detail how much money you made last year. As long as you’re still able to prove that you’re still currently employed or have the same level of revenue, you’re unlikely to encounter any issues.

It’s Essential to Choose the Proof of Income Example That’s Right for You

But the above information will make the process far smoother. From here, you’ll be able to ensure that the proof of income example you use will help you through the process you’re in.

Want to learn more info you should keep in mind? Be sure to explore what the rest of our blog has to offer.