Importance of Proof of Income Tax Returns

Are you applying for a loan, mortgage or visa and need to provide proof of income tax returns? Don’t worry; we’ve got you covered. In this guide, we’ll discuss the different types of tax returns that can serve as proof of income and also, how to obtain them. We’ll also try to cover the specific requirements for loan & rental applications and provide tips to ensure you have the necessary documentation to support your applications with ease.

What Counts as Proof of Income Tax Returns?

depending on the country you’re in

proof of income tax returns

  • 1040: This is the standard individual income tax return form used by US taxpayers to report their income, deductions, and credits to the Internal Revenue Service (IRS).

  • W-2: This form is provided by employers to their employees and shows the amount of money earned, taxes withheld, and other payroll-related information.

  • 1099: This form is used to report various types of income, including self-employment income, rental income, and investment income, among others.

proof of income tax returns

  • P60: A document that shows your total income and the amount of tax you’ve paid over the tax year.

  • P45: A document that your previous employer gives you when you stop working for them. It shows how much you’ve earned and how much tax you’ve paid.

  • SA302: A document that shows the income you’ve declared on your tax return for a specific tax year.

Get your Proof of Income documents within 12-24 Hrs.

Contact us on WhatsApp for quick response

Need a Replacement or Novelty Document?

Whether you’re applying for a loan, renting an apartment, buying a car, or applying for a credit card; our novelty documents can help you with all your needs.

*Contact us on WhatsApp for quick response.

Buy your Proof of Income documents.

*Contact us on WhatsApp for quick response.

Our Services

Pay Stubs / Payslips

The document containing records of an individual’s pay, including gross pay, taxes, and other deductions.

Bank Statements

It can be used to estimate an individual’s income using records of deposits, withdrawals and other transactions.

Read more

Other Documents

Get in touch to generate any other proof of income document and fulfil your needs.

Read more

FAQs

What is a Tax Transcript?

A summary of your return provided directly by the IRS.

What is a W-2?

An annual statement from an employer showing wages and taxes withheld.

What if I owe the IRS?

You must usually be on a payment plan to qualify for a loan.

Can W-2 forms be used as proof of income?

Yes, for annual income, but often paired with recent pay stubs.

Does a tax refund count as income?

No, it is considered a return of your own money.

What is a 1098 form?

It shows mortgage interest paid; lenders use it to verify your current debts.

Can assets qualify for no-income loans?

Yes, asset-based or depletion mortgages.

Can W-2 forms be used as proof of income?

Yes, for annual income, but often paired with recent pay stubs.

Are 1099 forms valid proof of income?

Yes, especially for freelancers or contractors.

Do tax returns count as proof of income?

Yes, usually the last 1-2 years’ returns.

How many years of returns do I need?

Most mortgage lenders require 2 years, while landlords usually only ask for the most recent 1 year.

What is the Earned Income Tax Credit (EITC)?

A refundable credit for low-to-moderate-income working individuals and couples, particularly those with children.

Can I deduct my home office?

Only if you are self-employed and use a portion of your home exclusively for business.

Can I use tax returns as proof of income for a rental application?

Yes, tax returns (e.g., Form 1040) are accepted for rentals to show annual income. Landlords may request the last two years to verify consistency, especially if pay stubs are inconsistent. However, they might redact sensitive info like SSN for privacy.

Is a W-2 form sufficient proof of income?

A W-2 is excellent for annual verification but not for current income, as it’s issued yearly. It’s often paired with recent pay stubs for comprehensive proof, especially in tax-related applications or when applying for government benefits.

What proof of income is needed for a mortgage?

Mortgages require extensive proof: two years of W-2s/tax returns, recent pay stubs, and possibly asset statements. Underwriters verify via employer calls or VOE (Verification of Employment) forms to ensure no fraud.

Proof of income for personal loans?

Pay stubs or tax returns; unsecured loans rely heavily on credit and income.

How do I report rental income?

You use Schedule E to report supplemental income from rental properties.

What is the debt-to-income ratio and how does proof of income affect it?

DTI is debts divided by gross income; proof verifies the income figure. A lower DTI (under 36%) improves approval odds, calculated using documented earnings.

A summary of your tax return that is often used for mortgage or student loan applications.