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What Ways Can You Show Proof Of Income? - 26 Options
Did your landlord, bank, or employer ask you to prove your financial stability, and you're unsure which documents will be accepted?
Read this article to find out what documents you can use as proof and what information is essential.
2 + 26 Documents That Are Proof Of Income
The simplest and easiest way to prove your income is to show a W2 form or a paystub;
- Pay stubs- As the name says, you should have one at the end of each pay period, whether weekly or monthly. It is usually the most popular way of showing proof of income.
- W2 form- This form is used to report wages paid to employees and the taxes that are withheld from them. You should get one from your employer every year via mail or online.
There are also another 24 documents that you can use for proof of income;
1099 form- This form will be given to all places where you have paid at least $600 or $10 in royalties or broker payments.
Employer letter- Also known as a new hire letter, you can use this to show what the job offers in those cases where you may not have access to a pay stub.
Pension statement- If you're paying into a pension, you should get an annual letter that shows you how much money is in your account and the performance of any investments.
Also read: How you can Calculate Retained Earnings
Payments ordered by the court- If you or someone else has had to pay through the court, there should be a court order or decree that you can request an original copy of.
Disability insurance documentation- When you apply for disability and meet the criteria, you'll have a copy of your award letter and can view it on your account online.
Unemployment documentation- When you fill out for unemployment, you can request a letter or proof of unemployment, and the program may depend on the state you live in.
W2 form- This form is used to report wages paid to employees and the taxes that are withheld from them. You should get one from your employer every year via mail or online.
Also read: What is Annual Income?
Pay stubs- As the name says, you should have one at the end of each pay period, whether weekly or monthly. It is usually the most popular way of showing proof of income.
Proof of income letter- You can write up one of these, and they are used as a type of contract to verify an individual's income.
Bank statements- This list of transactions is the best way to measure your spending in real-time, but it can be used as proof that you have credits and your balance reflects your financial position.
Also read: Raise Your Credit Score
Dividend or interest letter- Companies must declare any dividends or interest they pay out, which can be monthly, quarterly, or annually.
Tax return- If you've done the workings outright, your return should be the best reflection of what you've made in the last year, and after you file, you can request a tax return statement.
Annuity statement- If you're depositing regular payments, you may be able to find contracts or statements you receive each month to prove that you are building up credit in some way.
Scholarships and grants- If you receive a scholarship or grant amount, the issuer will likely mail you to say if you've been awarded it, though this offer may not be definitive as it's only a letter and not a realized contract.
Proof of severance pay- This might be a letter or pay stub that gives you the difference and may include insurance and other benefits you are signed up for.
Also read: How To Apply For a PPP Loan
Loan statements- At the end of each year, if you have a loan, you should get a statement every year that shows how much you've paid towards it.
Proof of residuals- These are a bit rare, but these are usually paid out to those working on projects with film and television and go on after each subsequent rerelease.
Reimbursement pay- You might own a business or be paid back for expenses, and if so, you can write up a letter or contract that can be signed.
Royalty income statement- You might file these payments as you would for tax, as you can use schedule form E, and it can be considered an administrative expense.
Sales receipt or proof of money- These can be printed or made, as they should show a description, unit price, and proof of purchase.
Also read: What Is ACH Payment?
Inheritances in property or cash- However you receive an inheritance, you should get a letter saying how much it is so you know how much of it is taxable if this applies to you.
Profit and loss statement- This cab be used by business at the end of each quarter to be used as part of a filing system or when applying for a loan.
Bookkeeping records- This makes sense as this is done to prepare your files for auditing, and when you're being checked, your books will be reviewed at some point.
Timesheets- Even though the employee can fill these out, they can be given as proof to an employer so they can sign off on it before paying the dues.
Social security award letter- Thai letter can be requested to show the income you receive through benefits and may be needed for loan applications or housing assistance.
Worker's compensation- Any programs you're signed up to in work may pay out in some cases, or you may need this proof for when you start with a new employer so it can be switched over to a new provider.
Conclusion
When you want to start paying rent towards a place or create a financial agreement, there's a good chance that the other party will want some proff of income documents to see if you can make the payments needed.
These documents can be used when you apply for credit, finance, a mortgage, a credit card, insurance, a new job, or a rental agreement. If you get some of these documents on a monthly basis, you may only need to keep the last 3-6 letters that you've received.
As long as each document has your full name, social security number, income amount, and frequency of pay, you should be able to use it in some way to confirm your financial position.
Your check stubs can be used as part of tracking your finances, use them to your advantage.
