Pay stubs are one of the most common documents that lenders ask for when evaluating loan applications. If you get paid with pay stubs, providing them is typically a simple task.
What do people do when they don’t have pay stubs, though? If you’re a freelancer and need to prove your income, you might be interested in learning how to show proof of income.
Fortunately, you can prove your income if you’re a freelancer, and here are some of the methods you can use.
Show Them Your Bank Statements
One type of proof of income for freelancers is bank statements. Your bank statements reveal all your incoming and outgoing money. The money that comes into your account shows that you earn money from your job.
A lender or landlord who views these statements can see how much money you earn and your income frequency. If your income goes into a bank account, you can provide these statements to show your income.
If you bring the last six bank statements you have, you can use them to prove that you have a reliable income coming in each month.
Provide Your Previous Tax Returns
If a lender asks for proof of income, you can also use your tax returns. A tax return shows all the income you earned in one year. If you work as a freelancer, you might get paid through 1099s, which you must include on your tax returns.
The benefit of using tax returns is that they prove reliable income for an entire year. If your tax returns show that you made a lot of money throughout the year as a freelancer, it can assure the lender.
Lenders typically ask for one or two years of tax returns when applying for loans. Landlords also ask for these when self-employed individuals apply for apartment rentals.
Make Your Own Pay Stubs
Additionally, there are other ways to prove income when you freelance for a living. One of these is by providing check stubs. If you don’t get paid with check stubs, you might think this is out of the question.
If you don’t get paid through check stubs, you can still prove your income with them. To do this, you’ll need to find a check stub creator, which is a program you can use to make pay stubs.
Making your own pay stubs is affordable and simple, and it solves a lot of problems. If you can make your own pay stubs, you will not need to use the other methods listed here if you need to prove your income.
Learn How to Show Proof of Income When You Need a Loan
You might need to learn how to show proof of income when you need a loan or want to rent an apartment. Learning how to do this is vital if you freelance, as you will experience times when you need to prove your income.
If you enjoyed this article, you’ll probably like others on our blog. Check it out today!
