7 Ways to Prove Income When You Are Self-Employed

Method 1: Professional Pay Stubs

Even self-employed individuals can create pay stubs -- you're both the employer and employee. When you pay yourself from your business account, you can generate a proper stub documenting that payment.

Create self-employed pay stubs here →

Method 2: Tax Returns (Previous 2 Years)

The gold standard for banks and mortgage lenders. Your Schedule C shows your net profit after deductions. Two years of returns demonstrates income stability.

Method 3: Bank Statements (3-6 Months)

Bank statements show actual cash flow and are harder to dispute. Many lenders now offer bank statement loans specifically designed for self-employed borrowers.

Method 4: Profit and Loss Statement

A P&L statement summarizes your business revenue and expenses. Even a simple one listing total revenue, total expenses, and net profit carries weight.

Method 5: 1099 Forms

If clients have sent you 1099-NEC or 1099-MISC forms, these are official IRS documents confirming your income from those sources.

Method 6: Invoices and Contracts

Outstanding and paid invoices show your billing history. Active contracts show future income. Some landlords accept recent invoices plus a signed client contract as proof of ongoing income.

Method 7: Letter from CPA or Accountant

A letter on official letterhead from your accountant confirming your income and business stability can sometimes be the deciding factor.

The Best Strategy: Combine Multiple Methods

1. Create 3 months of professional pay stubs
2. Attach your most recent 3 months of bank statements
3. Include last year's tax return
4. Add a short letter explaining your business and income stability

Start with our proof of income guide →