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 example, there are many real estate agents that ask for proof of your income before searching for an apartment for you, view here for more. Even the financial lending institutions in the field will ask for proof from any client requesting for 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.
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, you should not be stranded if you have been asked to show proof of your income by any organization, the easy way is use the bank statement. It is easy to get a bank statement, for printed ones consult your banking service provider, but you can still download it via the bank’s website, or app.
Secondly, you can use your tax return slip to show proof of your income. Each year, all the citizens of different states are required to file the tax return. The tax returns shows a person’s earnings for the whole year. Therefore, one of the important documents that is acceptable in many institutions that require proof of income is the tax return paper. 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.
The easy way you can use to show proof of your income is by paying yourself if self-employed using pay stubs and W-2. 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. Many self-employed people are advised not to worry themselves with filling 1099, or directing payments to personal accounts, instead, they can use W-2 to pay themselves. After paying yourself using W-2, you can generate the pay stubs weekly or monthly. 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.