What is Proof of income how to do it and example

Proof of income is a check done by companies, financial institutions or other bodies with potential customers to ensure that they have the means to pay for products or services that will be paid for.

The most common time for proof of income will be requested during the initial application or negotiation phase. This proof is essential to establish the origin of the funds or private assets that are the object of the business relationship between a company and its client.

Proof of income may be necessary to ensure that the reason for the business relationship between the company and the customer is consistent with what would be reasonably expected of that customer, given their circumstances.

If you’re running your own business, income verification isn’t that simple because you don’t get paid receipts. However, there are several ways that income can be verified using the financial and business records available to you.

How to do an income proof?

An income verification letter must be completed first, determining and confirming a person’s income. This letter can be arranged by an accountant and should clearly state basic income information. In addition, the following documents must be attached:

tax returns

If copies of tax returns have been retained, copies of the requested years may be taken for filing with the agency or creditor. If copies of tax returns are not kept on file, they may be requested from the tax agency.

Generally, a creditor wants to see your income tax return for the past two years. If total income during those years is combined and averaged, we have average net income. Dividing that number by 24 will show the average monthly income.

If your income is irregular, this figure may be more useful in demonstrating that you have enough income to pay your monthly rent or mortgage.

Bank statements

Mandatory statements can be withdrawn from the bank account online, but it may be necessary to visit a branch. Depending on the agency requesting bank statements, account statements may need to be collected for several months or years.

If the origin of a deposit is not documented, such as when a customer pays in cash or has been transferred from another account, you should be prepared to find documentation that shows that the deposit in question is income to be taken into account to verify the income.

Contracts and invoices

Find out in advance which documents the lender or agency will need to prove income by making a checklist to check off while documents are being obtained. Hiring an accountant may be considered to ensure files are in order.

You can also communicate with customers to obtain vouchers related to contracts or paid invoices from them.

income statement

If you own a small business, you may need to create a profit and loss statement that summarizes income, costs and expenses for the period requested by the lender or agency.

income projection

If you are applying for a significant long-term loan, the lender may want to see projected income several years into the future.


income verification letter

Write header and date

Contact details must be specified at the top of the document. Include name, address, contact number and email address. This will make it easier to access the answer. Then the date the letter was written must be placed.

If the company has letterhead on which the letterhead is already present, it is not necessary to retype it.

write the recipient

If the letter is to be addressed to a specific person, their name is mentioned with their respective position in the company.

When you have a specific recipient, it starts with “Dear” or “To”, followed by the recipient’s last name. For example, “Dear Mr. Gómez” or “For the Quintero Licensee”. If the person who will receive the letter is not known, the pattern “To whom it may concern” will be used.

Introducing the message

In the opening sentences, you must first introduce yourself and clarify the reason for the income receipt letter. A polite greeting is the introductory part. Make an impression on the reader. Therefore, ethical professional treatment must be maintained.

For example, you can say, “My name is Johanna Rodríguez. I am writing this letter to verify my income in correspondence with my mortgage loan application. Furthermore, this letter will serve as a document to support my merit for approval.

Saying it as directly as possible will help save time. Main and secondary income must be mentioned.

You can mention the business or occupation you own. Also, how long have you been earning that amount and how long can you continue to keep that income.

For example: “I am a sales manager for company Y. I have worked for this company for eight years. My monthly work accidents with sick leave, and unpaid leave for personal matters. In the latter case, the firm may cut the employee’s salary is $XXXXXX. In addition, I also have a small business, Z Car Wash. This entity has been operating for five years and earns around $xxxxx per month. ”

indicate attachments

There should be a note indicating the presence of attachments. This section basically introduces the additional documents, notifying the recipient that there is additional documentation they can use if needed.


The closing is just as important as your introduction. Final remarks also vary by level of formality and function. Some have less professional goals, such as “With pleasure”, “With gratitude” or “Thank you very much”.

There are also phrases for more professional situations, such as “Sincerely,” “Sincerely,” or “Sincerely.”


Especially if the document is printed, the signature stamp should be the grand finale. In the space provided after closing is the part required to sign the letter and nowhere else.

include attachments

As already indicated, there are additional documents attached to the letter, this is the section where you can specify them. All supplementary documents must be named.

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