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. Apart from the real estate agents, and companies, you cannot request a loan from any financial institution without showing proof of your income. So, even the self-employed individual must show proof of their income before they can access some services in the field. Here are the various ways by which one can show proof of income even if self-employed.
You can use a bank statement. If you want to show proof of your income to any institution, one of the best things to use is the bank statement. Even if you are not employed by the state authorities, if you have been saving some money from in your account, the bank has all the records to act as proof of all the transactions. So, if a real estate agent or a lending institution ask you of proof of income, do not worry, use your bank statement. Getting bank statement is easy, you can contact your banking service providers, or get it online via the bank’s 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 return will show a citizen’s income for the whole year. So, the tax return document is one of the legal things one can use to show proof of income. So, in case you want to borrow money from any institution, one of the best document to use as the proof of income is tax return paper. Getting your tax return document is easy, you can get it online 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. Most people think that only civil servants can use pay stubs and W-2, but the truth, even self-employed individuals can use this system to pay themselves. 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. 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.