According to recent statistics, the majority of working Americans get paid by the hour by their employer.
If this is the case for you, you’ll likely be familiar with paychecks, stubs, and various other forms of documentation that detail your earnings and other important information about your job. However, if you work for yourself or you earn money in some other nontraditional way, you might not be able to access proof of income documents as easily.
This can pose a number of problems, as many official processes require you to provide evidence of the amount of money you earn.
To learn more about proof of income and why it’s important, keep reading.
What Are Proof of Income Documents?
Quite simply, a proof of income document is anything that provides evidence of the amount of money earned by the person concerned. Below are some of the most common examples of proof of income documents.
Your bank statement qualifies as proof of income. You should always try to use your most recent statement, or at least one from the last six months.
Your pay stub is another common method of proving your income. If you’re an employer and you need a way to produce pay stubs efficiently, consider using a paystub generator.
As noted above, self-employed people can have a tough time getting traditional forms of proof of income. If you work for yourself, your ledger documentation can be sufficient evidence of your income in some scenarios. However, if this documentation isn’t independently verified by some official body, it may not work in every circumstance.
Government Benefits Letters
If you don’t have a source of earned income, don’t worry. Evidence of your benefits should suffice.
When Might You Need Proof of Income?
There are a few different scenarios in which you might need to prove your income. Perhaps the most common is when you find a new place to live; a landlord is going to want to know how much you earn. If you’re applying for a mortgage, you’ll need to provide proof of income for this as well.
What Won’t Work as Proof of Income?
There are some items that display or indicate your level of income, but will not usually be accepted as proof of income for official purposes. For example, a contract of employment might be deemed insufficient. The same can be said of evidence of commission, dividends, or employment bonuses.
Keeping on Top of Proof of Income Requirements
Getting proof of income documents together can prove tricky, especially if you’re not in traditional salaried employment. Most businesses nowadays prioritize identity verification and security checks to such a great extent that they want two or three forms of income and identification.
However, you shouldn’t have any problem getting the proof of income you need as long as you know what you’re looking for. The information we’ve shared here should send you on your way.
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