How to Show Evidence of Income When You Need a Loan



Evidence of income is an important part that you need to go through when applying for a loan. Firstly, your proof of income has great significance to your bank, landlords, and many other entities. Secondly, your income reflects mainly on several things, such as your health insurance plan and the amount you can receive for a loan. 

However, the real question that comes here is how you can show your evidence of income when you have to get a loan, right? Don’t worry. We are here to help you out. This article is all about how you can show your evidence of income. But first things first.

What is evidence of income?

In simple words, evidence of income is a set of documents that some authorities request to verify your income and calculate how much you can pay them back. On some occasions, your simple letter summarizes and demonstrates your income and employment can do the job.

It doesn’t matter if the letter is written by you, your employer, or an accountant. What matters is that it must include the basic information of your income. So the concerning authorities can have a vivid picture of your earnings.

But you might be wondering what type of information is supposed to be present in the letter; if so, we are about to explain it. This information can include your average working hours for an entire week, annual salary, or hourly income, but mainly how your income can be sustained in the future?

For instance, if you are getting consistent raises for several months and you anticipate raises in the future. Additionally, there isn’t just a letter that can be used to show evidence of your earnings. Authorities might ask for some supporting documents; what are those? Don’t worry, the next part is all about them.

What can be used as evidence of income?

Although it all depends on the authority that is concerned with your evidence of income, for example, some might only ask for a pay stub as a supportive document, while others might ask for a copy of last year’s tax return. 

However, here is some of the most common information that is used as evidence of income. Even though this is a profound list of documents, it is enough for you to have an idea of the documents and why some are more important than others.

  • Your complete name
  • Amount of your Income
  • Date
  • Additional verification information such as your security number
  • Employer name (if applicable)

Types of documents that can be evidence of income

Now that you understand what is “evidence of your income,” it is the right time to show you some common documents that are required by most entities.

1.Documents from your employer

Documents from your employer are the most important ones if you are an employee. Since these documents are the up-to-date ones and anyone can have a look at your fresh income. But what are they?

The main document that comes from your employer is the pay stub. Some authorities ask for these to have a look at your pay period and income that you are receiving from your employer. We suggest you deliver the most up-to-date pay stub to represent your income.

The other document that holds some importance and comes from your employer is the evidence of the income letter. Notably, this can act as both verification of your income and some positive words that recommend you in front of the lender.

2. In case of unearned income

If you have some streams of income but they are not earned directly by you. In other words, these are called passive incomes, and they come with a handful of documents, which can help you strengthen your case. 

Although they aren’t a steady source of income, they can aid in proving your income steady for a short time. Still, you need an active source of income for a longer period of time in case these streams of income stop.

Anyway, the documents that you need are usually issued by the government. These mostly involve social security proof of income letters

Another document that can support your case is the annuity statement. You might be wondering what is an annuity statement, right? It is an agreement that you make with your insurance provider that you will receive a fixed stream of income in return for a lump sum amount. You can get your annuity statement from your insurance company.

The last but not the least document that falls in this list is the copy of unemployment benefits. Although they can’t help you much, unemployment benefits copy can cover a small period of temporary financial assistance. They have different rules depending upon the states. However, you can get your copy from the state’s unemployment office.

3.  Documents of taxation

Last of the documents that can help your case when you need a loan is the tax documents. Although it can be really hard to keep fresh copies of these documents if you don’t keep a record while the tax season ends. However, it can be helpful due to their legal significance.

Furthermore, these documents are not as precise as a pay stub because tax returns are filed annually. This means if you have received a raise after the tax return, it will not be reflected in these documents. 

The main documents categorized in this section are last year’s tax return and wage and tax statement. They can be pretty handy, and you can get yours from the tax office and your employer, respectively, if you don’t have these on hand.


It is good to see you down here. We hope this important piece of information will help you in your life and applying for a loan will never be a problem anymore, right? However, we suggest you keep your documents on hand even if you don’t need a loan. This is because these pieces of evidence for your income aren’t necessary for loans alone. Instead, they can become pretty handy for other reasons as well.

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