How Young Workers in Maryland Can Establish Proof of Income
The concert economy, also known as the access or sharing economy, is now booming in Maryland. It allows you to earn income from on-demand works and services. Usually this work is available on websites or digital apps.
However, proving proof of income, especially when you want to take out a loan, can be difficult. If you want to establish proof of income for concert work in Maryland, here are some easy ways.
- Locate your tax returns
Start by locating your tax returns. Your work together is legitimized if you can provide proof of having submitted your tax returns. It proves that you made a profit from your gig. If you have been working freelance for some time, it is essential to demonstrate a trend of increasing income.
When you try to take out a loan, your lender will probably want to see your tax returns for the past two years. They may need to see more depending on the size of your loan application.
- Track your income with the online accounting service
Consider using an online accounting service to track your expenses and income. There are many inexpensive cloud services that you can use to track your spending in real time.
With these services, you can easily print reports to show your income, profit and loss. Some, like Pay stubs, come with pay stub generators which can help you generate pay stubs fast. You can easily check the income.
- Take out valid bank statements
Bank statements can help you demonstrate the flow of money in and out of your bank account. With one year of bank statements, you can prove your income and establish yourself as creditworthy.
However, bank statements are unlikely to be right for you if your business and personal finances are mixed up. If you derive most of your income from self-employed contract work, it would be wise to use a separate account.
This makes it easier to keep track of your income and expenses. You can prove your income by simply providing your statements to lenders.
- Proof of income for self-employed workers
Historically, the self-employed have always struggled to justify income. Whether you’re a freelance writer, photographer or graphic designer, understanding the financial side of your job can be complicated.
The concert economy is filled with self-employed, and they all work in different industries. Unlike in the past, self-employment is increasingly accepted. Lenders and landowners no longer discriminate against these workers. However, providing proof of income remains a challenge.
Documents to verify proof of income for self-employed workers
There are many documents that can be used to verify proof of income whether you are a freelance writer or a gig worker. They understand:
- W-2 Forms
- Pay stubs
- Statements that include the name and address of people your business has partnered with
- Invoices with the name and the name of your company
- Establishment permit
- Your written business plan
- Your tax form 1099. However, this may not work if you make too many deductions or if you do not claim all of your income. Keep this in mind whenever you file your taxes
- The annual income statements of your company. Although this is not a requirement, it does play a major role in legitimizing your business.
Did you know that the freelance career has improved by over 41% in the past year? Many people are now choose self-employment compared to traditional forms of employment because of its flexibility and increased potential for income management.
However, proving income has always been a challenge. However, with the solutions listed above, it is possible to prove income and get a loan with minimal hassle.