How to show proof of income: Different methods explained

Business News | 7 May |

Did you know that landlords require tenants to make about three times more than their lease in order to approve them for an apartment? And while this you may think that verbal authorization is sufficient, there’s a more the landlord will require from you in order to verify your income.

Whether you’re planning on renting an apartment or buying a new car, businesses will require that you show your proof of income.  But with all of the documents you have available to you, what counts?

There are several different ways you can show proof of income. Here’s all you need to know: 

1. W-2

One way you’re able to verify your proof of income is by presenting your W-2’s. Because this is a verifiable document from the government, it can be used by itself or with one other document to get you approved. 

Pros: W-2’s are reliable. Because they are used by the government and produced by the employer, companies are more inclined towards accepting W-2’s. 

Cons: Because they’re not used on a daily basis, W-2’s are often misplaced and not easily accessible.

2. Tax Return

Another way you’re able to provide proof of income is through your tax return. Places like apartment complexes often times will require that you provide multiple pay stubs in order to prove your income. 

While you may not have access to it right away, it will provide your landlord with accurate numbers when it comes to your salary.

3. Letter From Employer

If you’re able to obtain a letter from your employer, this can also serve as proof of income. Although you will need additional documents, this kind of proof is easily obtainable. 

As long as your employer agrees to write a statement on letterhead verifying your income, this can be used. Here are the pros and cons of using a letter from your employer:

Pros: Letter from an employer are easily obtainable. In addition, employers can give feedback on your character. 

Cons: As you can imagine, this kind of document can be forged.

4. Pay Stubs

Pay stubs are one of the most popular ways to verify proof of income. Even if you are paid through direct deposit, you can use a paystub generator to create the statement that is required. 

Here are the pros and cons:

Pros: Because employees get paid within a bi-weekly basis, pay stubs are easily accessible and obtainable. In addition, they provide up-to-date information because it’s current.

Cons: For commissioned-based persons such as those in sales or waiting, pay stubs may not accurately reflect the wages earned.

How to Show Proof of Income and More!

Whether you want to learn the different ways of showing proof of income or are looking to expand your financial knowledge, we’re here to help. Finding an all-inclusive platform that gives expert investing advice can be difficult. Fortunately, we’ve put together all the resources you need into one site so you’re able to take your financial life to the next level.

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