How to Show Proof of Income for Self-Employed Individuals
What is proof of income?
Proof of income is any document that proves that you’re earning.
This can come in the form of a pay stub, a W-2 Form, a 1099 form, or a bank statement.
And you get these by either asking them from your employer or by making your own proof of income statements.
If you're self-employed it gets easier to manage your own time because you are your own boss.
The challenge then lies in how you're going to prove you're making revenues authentically and using those proof of income documents for almost every important transaction which you have.
Proof of Income Statements for Self-Employed Individuals
Income Tax Returns
Income Tax Returns are documents that are filed by taxpayers who have received income during the year.
The Income Tax Return forms are available on the IRS website.
As an individual or business owner, you are required to file an Income Tax Return if you have any of the following income items
There are two main types of income tax returns:
Annual Income Tax Return (Form 1040)
This is the form that most taxpayers will use.
It is used to report your income and calculate your tax for the year.
It is also used to calculate your tax for the year.
Form 1099
It is used to report capital gains to the IRS and to the taxpayer.
It also reports the amount of taxes withheld.
It is important because the information will be used to determine how much taxes you owe and will be used to verify if you have been paying taxes on your dividends and capital gains.
Bank Statements
The purchases and withdrawals you make from your banks are very straightforward ways of proving your income.
These documents are almost indisputable since it shows the movement of cash.
These are great shortcuts to revealing how much you earn and how you’ve been spending your money.
The good thing about bank statements is that you have immediate access to them.
But they may only come if you’re employed by someone else.
Profit and Loss Statements
These statements are invoices of your profit and loss. They can be a great proof of income forms especially since they show that you earn and that you've been spending to improve your business. It must however show you're consistently earning profits at a given period.
Proof of Income Letter
You can also ask your employer to give you a letter showing how much you’re earning or how long you’ve worked in your job.
Even just showing your monthly salary or your hourly rate is good enough if you want to prove with legitimacy that you are earning and your money comes from a legitimate source.
Contracts and Hire Statements
Contracts coming from clients who are you are invaluable. They show the length of time you'll be doing the work and the payments you receive. They are the most powerful income statements for self-employed individuals.
Generate Pay Stubs Online (Use a paystub generator)
You can also use a free paystub generator online to make sure that you can prove your income on your terms and make sure you also control what appears on it.
Can I make pay stubs for myself if I’m self employed?
Yes you can! PayStub Direct has various paystub designs and templates and it’s up to you to choose which format you like.
Generating your pay stub is as easy as filling in your information, previewing it.
Click the button below to create your own pay stub and start proving your income:
Takeaways
Proving your income typically comes through showing your pay stubs if you’re an employee, showing your tax returns, revealing your bank statements, or taking advantage of an online paystub generator.
An online check stub maker can help you go a long way in documenting your earnings and is a fantastic alternative if you’re wanting to show your earnings real quick.
