How to Show Proof of Income if You’re Self-Employed

How to Show Proof of Income if You’re Self-Employed

Self-employed people often have to work twice as hard to get half as much. When it comes to providing proof of income, the stakes are even higher.

But if you’re asked to show how much money you make, don’t despair. Here are a few easy examples of how to provide proof of income. 

Proof of Income Letter

Not all self-employment is created equal. If you freelance for a corporation, your options for proof of income are much broader. 

One of the most common ways freelancers show proof of income is by using a letter from your employer. You’re classified by the IRS as self-employed when you’re a contractor, but technically you are under the umbrella of a larger company with the resources to show what you make during any given period.

Ask your supervisor or HR department for a proof of income letter on company letterhead when needed. 

Proof of Income Examples

Outside of the traditional letter from an employer, you can also ask for proof of income from your accountant. Many business owners have accountants or bookkeepers who can provide annual tax or produce pay stubs online.

There might be an additional cost for accountants to prepare this information, but it’s worth it to have an official statement of income. Another way to prove your income is by using bank statements.

This method is common if you’re a gig worker and don’t have a specific company to vouch for you. Use the cash available and the history of your deposits as proof of income.

Keep in mind that as a gig worker or someone who works odd jobs, your instability may be seen as a risk to lenders. This means they’ll need more than one type of proof that you can repay a debt.


Often, this means having both an annual tax return, bank statements, and potential references. The extent of verification depends on the type of loans you’re applying to receive.

Home loans, for example, require extensive verification while you’re in underwriting. But if you’re applying for a loan with a no proof of income car dealership, there might be less scrutiny involved in your finances. 

How to Get Proof of Income

There are many ways to get proof of income, but not every way works for every lender. Make sure you do your due diligence before starting the loan process so you don’t get denied because of incomplete paperwork.

Most lenders are transparent about what it takes to get approved. Your proof of income shows them you have the financial stability to repay a debt without the need for additional help.

High-risk borrowers can expect to pay high-interest rates on loans, especially if the income verification process is minimal. The lender’s decision to skip proof of income is a sign that the company plans to quickly earn its money back in interest payments to lower its risk.

For more information and tips, visit our blog for updates. 

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