INDIVIDUAL INCOME TAX RETURN The IRS federal tax return will give proof of income and sources of income that the applicant may not have mentioned to you. Unfortunately, like Form W-2, the tax return is a snapshot of the prior year and does not show the applicant’s current income. It is not necessary to ask for the entire return. Total income for the year appears on Form 1040, lines 1-9. FORM 1099 Form 1099 is one of several IRS tax forms used to report various types of income other than wages, salaries and tips by freelancers, real estate agents and other business service providers not on a company’s payroll. If your applicant worked as an independent contractor or freelancer and earned over $600 from a given employer, they should have income reported on a 1099 form. INTEREST AND DIVIDEND INCOME Interest and dividend income can easily be found on the applicant’s tax return or a brokerage statement. On the tax return, there will be a 1099-INT and a 1099-DIV. This proof of income is very reliable. SOCIAL SECURITY BENEFITS STATEMENT Since Social Security payments are issued by the U.S. government, this source of income is very consistent and can be easily verified. Renters with current social security benefits can easily download and submit a copy of their social security proof of income letter to verify their income. WORKER’S COMPENSATION LETTER Workers’ compensation is insurance that provides cash benefits and/or medical care for workers who are injured or become ill as a direct result of their job. If your applicant was injured in a workplace accident and is receiving worker’s compensation payments, ask them for a copy of the letter awarding them the benefit. Be sure to check the date of expiration on their statement.
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