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There are a lot of platforms that people get paid through. Whether you receive payment through PayPal or a good old-fashioned check, sometimes you have to have proof of income. In other words, you need to find a way to prove to others that you make a certain amount of money.
We’re going to discuss proof of income today. We’ll take a look at the different documents and digital correspondence that you can use to show that you make a certain income. Hopefully, we can help you get over any income verification problems that you’re having.
How to Provide Proof of Income
The type of institution or company that requires your proof of income should determine the route you take to get the right documents.
In the case of a loan, you might have to have official tax documentation, sometimes reaching back a few years. Rental applications or housing businesses might just need to see that you typically make enough money to cover your rent. A lot of it is up to the business itself.
So, if you’re not totally sure about how the company you’re working with feels, it’s best to ask them what they prefer as proof of income. However, you might not have the documentation they prefer, so let’s take a look at some things that can work.
Taxes, W2s, Paystubs as Proof of Income
In terms of consistency, tax returns, W2s, and official paystubs will work as proof of income almost every time. There are only a few instances where you won’t be able to get by with those documents. So make sure you keep tax and payment documents in a folder somewhere that you won’t lose them.
We’re all guilty of tossing a paystub aside once the check hits our bank accounts, but it’s an unwise thing to do. You might need that information for taxes later or if you come into some legal struggle. For many reasons, clear documentation of your income can come in handy in a lot of instances.
So take a look around and see if you saved your recent paystubs. If you can find them, they should work as proof of income.
If you get your wages in cash, things can get a little trickier.
Be sure to document any situation where an employer is paying you in cash. Ask the person to account for their payment to you, in writing. This means taxes should come out and invoices should be made. Moreover, there should be a clear record of how much you were paid.
You should also ask for official paystubs of some kind. Get a clear way for you to verify that your employer has paid you specific amounts. The nice thing is that, when the employer keeps good records, they should provide you with an accurate 1099 form at the end of the year.
That form can be used as proof of income. If you’re having issues with cash and verification, ask your employer to consider using a payroll check template and writing you checks.
In terms of Paypal and cash apps, your best bet is to keep close records of your payment history. You might be able to send images of your payment history and reference them against your bank account to prove that you are, in fact, earning an income.
Want to Learn More?
Hopefully, the options for proof of income listed above can help you get to the next step of whatever process you’re undergoing. If there’s more that you need to know, though, we’re here to help.
Explore our site for more ideas and insights into ways that you handle issues with your paycheck documents.
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