How Do I Provide Proof of Income?

Money and tax documents

Whether you’re renting an apartment, applying for a loan, or opening a credit card, there are many instances throughout your life wherein you may be asked to provide proof of income documents. But if you’ve never done so before, you may be wondering: How do I provide proof of income? Xpress Cash covers the various forms of income verification that are widely accepted by most institutions, below.

What Counts as Proof of Income?

When you’re asked to provide proof of income documents, the following examples should be acceptable. Some lenders or landlords may only ask for one document, while others might request two or more forms of income verification. 

  • Verification from Your Employer
  • Pay Stubs – One of the most common forms of income verification is your most recent pay stub. Depending on the lender, it may be an additional requirement that your pay stub lists your pay period and pay frequency.
  • Income Verification Letter – If you have a strong relationship with your employer, an income verification letter can serve as both proof of income and a casual letter of recommendation.
  • Tax Documents
  • Your Last Tax Return – A copy of last year’s tax return (1040) is another commonly accepted proof of income document. It’s convenient because it shows all of your sources of income in one place.
  • Wage and Tax Statement – You can also provide a copy of your W-2 from your employer. If you have multiple employers, provide a W-2 for each one.

How Do I Provide Proof of Unearned Income?

What if your income doesn’t come from an employer? Some individuals receive income from Social Security, alimony, pensions, or other such sources. This would be considered unearned income. Here’s what would be accepted as proof of unearned income: 

  • Social Security Proof of Income Letter – If you receive Social Security benefits, you can print out a Social Security proof of income letter when you log into your account online.
  • Pension Distribution Statement – Provide a copy of your most recent tax form 1099-R if you are living off your pension benefits.
  • Court-Ordered Payments – If you receive alimony or child support payments, you can request a copy of the original agreements from the court and provide the copy as your proof of income.
  • Unemployment Benefits – If you’re receiving unemployment benefits, you will want to contact your state’s unemployment office to receive a copy of your documents.
  • Workers’ Compensation Letter – If you were injured in a work-related accident and are receiving workers’ comp benefits, you can request a copy of your documents from the insurance company or the court that took care of your case.

What if I’m Self-Employed?

Many folks are self-employed these days, whether that means doing freelance work, driving for rideshare services, or running your own business. Forms of income verification for the self-employed can include the following examples:

  • Wage and Tax Statement for Self-Employed – The most common form of income verification for self-employed individuals is a copy of their last 1099 tax form.
  • Profit and Loss Statement – This is prepared by the individual and summarizes their costs, expenses, and revenues.
  • Bank Statement – Some lenders or landlords might also accept a bank statement as proof of income, so long as it shows you have a steady stream of income.

Learn More With Xpress Cash

If you have any lingering questions about proof of income documents and what is or isn’t acceptable, the team at Xpress Cash is here to help. Contact us or visit one of our Michigan locations to get started today! Can’t provide one of the forms of income verification we listed here? Read up on no income verification loans to explore your options.