Did you know that in the US, the average salary for workers is around $52,000? If your pay is around this amount, then you’re not doing too shabby!
Even if you’re making double or triple that wage, you’re still going to run into some snags when you want to do things like buy a car or home. Lenders will want to see your proof of income, which can be quite easy or tough, depending on your working situation.
To help you out, below are 5 ways you can show proof of income.
1. Current Paystubs
If you’ve been employed for a while, this is a great way to show your proof of income. That is, if you’ve been saving your paystubs!
Go to your drawer and take out the last 3 or 4 paystubs you’ve gotten. Then, all you have to do is submit them. Easy!
2. Federal Tax Return
Every year, you have to file taxes. So this is another easy way to show proof of income, as all you’ll have to do is get your last tax return and submit it.
However, there’s a catch to using this: federal tax returns are based off your income from the previous year, so depending on the current time of year, it may not have very recent numbers. So it’s always a good idea to attach additional information, such as your last few paystubs from your employer.
3. Proof of Income Letter
This is a fantastic way to prove you have money coming in, whether you’re an employee or freelancer. You can have your employer or clients write you a proof of income letter to show how long you’ve been working for/with them, how much you’ve been paid (and when), and how reliable you are.
This letter can help sway those on the fence, such as landlords. If they can see testimonies that you’re trustworthy and reliable, it can swing things in your favor.
4. Bank Account Statements
If you have a business bank account, you can just print out statements and show whoever is asking. Otherwise, you might have to do some digging if you only have a personal bank account.
Print out the statements and then highlight all business-related income so it’s easier to see.
5. Self-Generated Paystub
This won’t work as standalone income proof, but it can definitely work as reinforcements, especially if you’re self-employed.
You can generate pay check stubs online in five minutes with handy websites. Simply fill out all your details, as well as your work details (like hours worked, rate, and project information). The site will then put all that data neatly into a self-generated paystub that you can print out.
Show Proof of Income With These Documents
The next time you need to show proof of income, you’ll be ready. This article’s given you several proof of income documents you can use, so you can make sure everything moves along quickly and smoothly. We wish you luck in your endeavors!
Now that you know how to prove income, stay on top of your finances by reading the rest of our blog page.
