How much money do you earn? This is a question you need to know how to answer.
You often need to show proof of income when applying for a mortgage, renting an apartment, financing a car, or trying for a loan. For those who are employed on a full-time basis, this is simple, but it can be harder if you’re self-employed.
Ready to learn more about how you can prove your income? If so, keep reading to find some of the best ways—then, you’re sure to get approved for that loan or mortgage!
Letter from Employer
One of the easiest ways to show proof of income is with a letter from your employer. If your business is able, ask them to write a letter, on company letterhead, outlining how much you earn.
They may state how much you make annually or how much you earn, on average, each week. Your employer should also sign and date the letter, plus provide contact details in case there are any questions.
Most landlords will accept this when you’re showing proof of income.
Pay Stubs
Another top way to prove your income is with pay stubs. Each week, your employer gives you a pay stub along with your direct deposit, verifying how much you’ve been paid.
However, what happens if you’re self-employed? Even if you don’t have a regular employer, you can create your own payslips, using an online paystub generator.
Bank Statements
Wondering how to show proof of income of your employment is irregular? If you’ve recently switched jobs or if your income varies each month, you may want to use your bank statements to prove your income.
This is easy with online banking, as you can print off or save several months’ worth of income statements. Then, highlight the deposits, demonstrating how much you’ve earned each month.
You can black out any private information or personal transactions, so don’t feel like you need to give away anything you don’t want to share.
W-2 Form
If your company issues W-2 statements, this is a great method for verifying your income. A W-2 form is also known as a Wage and Tax Statement.
This document is sent to both each employee and to the IRS as evidence of how much money you earned in the last 12 months. It’s official documentation, so it should be accepted by just about anyone as proof of income.
Show Proof of Income With These Options
With so many ways to show proof of income, it’s easier than you might think to demonstrate your earnings. There are plenty of times in life when you’ll be asked to show proof of income, so it’s good to know how to do this quickly and efficiently.
Plus, it’s a great feeling of accomplishment to look back each year and see how much you’ve earned!
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