There are some activities that you cannot get involved in if self-employed unless you show proof of your income, you can click here for more info. 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. Apart from the real estate agents, and companies, you cannot request a loan from any financial institution without showing proof of your income. 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.
First, you can show proof of your income by the use of bank statement. One of the effective way to show proof of your income is by using bank statement. If you are have been making deposits into your account whether self-employed, the bank as all the record of your account since it was opened. Therefore, if you want to rent an apartment or request loan from any financial institution, you can use your bank statement to show proof of income. Getting bank statement is easy, you can contact your banking service providers, or get it online via the bank’s app.
Another important document you can use to show proof of income is your tax return. 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. 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. 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. So, the documents you will get from this system can act as your proof on income when needed by your lending institution, or real estate agent.