Acceptable proof of income

Use this type of income list to determine which documentation can be used for proof of income. Call us at 800.KIDS.101 if you need help understanding this list.

Salaries, wages, commissions and bonuses

Pay stubs

This is the preferred method of proof. The pay stub must:

  • be dated within 60 days of received date
  • have the Julian date on image, email or fax
  • include employee name
  • include employer name
  • have the paid date or check date
  • have the current gross income amount
  • have year-to-date (YTD) gross income amount1

1If there is no YTD on the pay stub, two or more pay stubs must be sent.

Letter from the employer

The letter from the employer must:

  • be dated within 60 days of received date
  • be on employer letterhead or signed by employer
  • state the employer does not provide pay stubs
  • employee’s name
  • annual salary
  • gross year-to-date (YTD) earnings as of the most recent pay
  • if hourly:
    • hours worked per pay
    • hourly rate
    • length of pay period (i.e. weekly, bi-weekly)

The letter is only acceptable if:

  • the employer does not provide pay stubs
  • you have just started job and have not received a pay stub
  • you are a clergy member

Business ledger

The business ledger must:

  • dated within 60 days of received date
  • employee name
  • employer name
  • paid date or check date
  • current gross income
  • year-to-date (YTD) gross income amount

The business ledger is only acceptable if the employer does not provide pay stubs.

W2

The W2 can only be used if your pay is not consistent throughout the year.

The W2 is only acceptable if you are a:

  • substitute teacher
  • per diem employee
  • seasonal employee that does not receive unemployment
  • clergy member
  • college professor
  • consultant

W2, 1099

These are only acceptable if:

  • your pay is not received consistently thoughout the year
  • you are a seasonal employee that does not receive unemployment

Self-employment and sole proprietors

Prior year’s 1040 tax return, Schedule 1, Schedule C / Schedule C-EZ

These documents must include1:

  • Schedule 1/Line 3 and Schedule C/Line 31 (or Schedule C-EZ/Line 3) should equal to ensure all income is accounted for2
  • if an extension was filed, a copy of the extension and a Profit and Loss statement for the current year are needed
  • any business income not being reported for tax filing purposes will require a year-to-date Profit and Loss statement

The Profit and Loss must include:

  • business name
  • time period covered
  • should be prior to the current date but recent
  • if this is a new business in the current year, the time period start date would be the date the business started
  • gross income earned in that period
  • line item list of business expenses for the period (insurance, gas, utilities, etc.)
  • net profit figure for the period

1After mid-April, you must submit the current year tax return unless you have filed an extension.

2If they do not equal, all schedules may not be included.

Self-employment royalties and rental properties

Prior year’s 1040 tax return, Schedule 1, Schedule E/Part I

These documents must include1:

  • Schedule 1/Line 5, Schedule E/Part I/Line 26, and Schedule E/Part V/Line 41 should equal to ensure all income is accounted for2
  • if an extension was filed, a copy of the extension and a Profit and Loss statement for the current year are needed
  • any business income not being reported for tax filing purposes will require a year-to-date Profit and Loss statement

The Profit and Loss must include:

  • business name
  • time period covered
  • should be prior to the current date but recent
  • if this is a new business in the current year, the time period start date would be the date the business started
  • gross income earned in that period
  • line item list of business expenses for the period (insurance, gas, utilities, etc.)
  • net profit figure for the period

1After mid-April, you must submit the current year tax return unless you have filed an extension.

2If they do not equal, all schedules may not be included

Self-employment: Partnerships and S Corporations

Prior year’s 1040 tax return, Schedule 1, Schedule E/Part II

These documents must include1:

  • Schedule 1/Line 5, Schedule E/Part II/Line 32, and Schedule E/Part V/Line 41 should equal to ensure all Schedule E income is accounted for2
  • if an extension was filed, a copy of the extension and a Profit and Loss statement for the current year are needed
  • any business income not being reported for tax filing purposes will require a year-to-date Profit and Loss statement

The Profit and Loss must include:

  • business name
  • time period covered
  • should be prior to the current date but recent
  • if this is a new business in the current year, the time period start date would be the date the business started
  • gross income earned in that period
  • line item list of business expenses for the period (insurance, gas, utilities, etc.)
  • net profit figure for the period

1After mid-April, you must submit the current year tax return unless you have filed an extension.

2If they do not equal, all schedules may not be included

Self-employment: Farming

Prior year’s 1040 tax return, Schedule 1, Schedule F

These documents must include1:

  • if an extension was filed, a copy of the extension and a Profit and Loss statement for the current year are needed
  • any business income not being reported for tax filing purposes will require a year-to-date Profit and Loss statement

The Profit and Loss must include:

  • business name
  • time period covered
  • should be prior to the current date but recent
  • if this is a new business in the current year, the time period start date would be the date the business started
  • gross income earned in that period
  • line item list of business expenses for the period (insurance, gas, utilities, etc.)
  • net profit figure for the period

1After mid-April, you must submit the current year tax return unless you have filed an extension.

Unemployment compensation (UC)

Award letter

This is the preferred method of proof.

Claim summary and/or benefit payment history screens

These documents must include:

  • UC start date
  • remaining balance
  • weekly amount received

Annual amount of UC, W2

These documents are used for seasonal workers.

Seasonal workers

W2, 1099

Include this information with your documentation:

  • how many weeks you will work or will receive unemployment this year
  • if you were not a seasonal worker last year, you will need a financial determination letter or benefit payment history and claims summary from unemployment in addition to your most pay stub

Workers’ compensation (WC) payments

Award letter

Use current payment received or award letter.

Workers’ compensation is excluded income unless both WC and Social Security disability payments are received.

Social Security benefits

Electronic verification

This is the preferred method of proof.

Award letter, SSA-1099 form, form 1040, or form 1040a

These are not preferred methods of proof.

See electronic verification.

Monthly retirement benefits

Award letter

This is the preferred method of proof.

IRS form 1099-R, or bank statement and prior year's 1040 tax return

These are not preferred methods of proof.

See award letter.

Alimony

Decree of divorce, separation maintenance, or a written instrument to that decree

This is the preferred method of proof.

This must be court ordered.

12-month electronic payment history and prior year’s 1040 tax return

These are not the preferred methods of proof.

See decree of divorce, separation maintenance, or a written instrument to that decree.

Interest

Form 1099-INT

This is the preferred method of proof.

Previous year’s federal income tax return or statement from financial institution

These are not the preferred methods of proof.

See form 1099-INT.

Dividend

Form 1099-DIV

This is the preferred method of proof.

Previous year’s federal income tax return or statement from financial institution

These are not the preferred methods of proof.

See form 1099-DIV.

The North American Free Trade Agreement Transitional Adjustment Assistance Program (NAFTA/TAA Program) benefits

Award letter

This is the preferred method of proof.

Form 1099-G or check stubs

These are not the preferred methods of proof.

See award letter.

Capital gains/losses and other gains/losses

Previous year’s federal income tax return

This is the preferred method of proof.

Other sources of income

Documentation that supports this income

Supply documentation that supports this income.