Your apartment application was just denied because you could not provide valid proof of income. As someone self-employed, you are not sure how to prove your employment.
Use this guide to learn about five simple ways to show proof of income:
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1Pay Stubs
The most obvious way to show proof of income is by providing pay stubs. A pay stub from your job will provide facts about your income including pay period dates, number of hours works, taxes withheld, gross wages, and the amount on your paycheck.
Proving a pay stub as proof of employment not only proves that you have a job, but it can show how much money you earn from your job. Some people may not receive pay stubs, like those who are self-employed. In this case, you can use a software program to create a pay stub or find a W2 generator that can be beneficial in proving income.
2Employment Verification Letter
An employment verification letter can be a way on how to prove income and how to prove employment. All you need to do is ask your employer for a letter. Employers usually know how a verification letter should be written and will make one upon request.
An employment verification letter is an official document on company letterhead. The letterhead is an important part of the document because most places require it. This document will state the name of the employee and how long they have been employed.
3Bank Statements
Using financial documents is one of the better ways to go about proving employment if you cannot receive the above options. This is the easiest way for those who are self-employed to show their income.
Your bank statement will give crucial information about your deposits. A regular history of payments into the account can help you get approved. Some places ask that you provide bank statements from the last three months to prove income.
Always keep bank statements handy. They can easily be printed out through your bank’s website.
4Create Financial Statements
Self-employed individuals have a harder time with proof of income. In addition to the choices mentioned before, they can create financial statements. As the owner of your own company, you are allowed to do this.
Financial statements can be made in different ways, but the best type is an income statement. This statement will prove the amount of revenue your business made during a certain time. They can be created for each month, quarter, or year.
Income statements also show the expenses of the business. Depending on the period you create, the expenses for that period will be reflected.
51099s
1099 is a tax form that companies send to businesses that they hire. This can be used as proof of income.
An example of this would be a company that hired freelance writers. These freelance writers will receive 1099 for the year.
These statements can show your address, name, social security number, and business number. It also states the amount of money that was paid.
Show Proof of Income
Now you can get that new apartment you have been eyeing because you know how to show proof of income. Any of these 5 ways will provide you with what you need to take the next steps in your new home.
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