There are instances when you have to disclose your income details to some company or a government body or even an individual. The purpose could be obtaining a business/personal/any other loan, renting a house/apartment, applying for a residency visa or some other purpose. The proof of income letter assures the other party that you have an income of a level that they can rely on and issue you the desired facility. It’s issued by the company you work in and if you are self-employed, you compile it on your own.

Proof of Income Letters

What is an income verification document?

A proof of income letter is a document that you present to an organization or business institution with the purpose of obtaining a loan or renting a new house or some other similar purpose. Usually, the institution is a bank or some other type of lending company. The thing you’re striving for is often monetary or something else with physical value.

Income Verification Letters

Types of proof of income letters

There are several reasons why one may require a proof of income letter. The most common reasons are when you’re applying for a job, when you want to apply for credit, when you’re planning to rent a house or an apartment, and so on.

No matter what your reason is, there is a need for income verification and the submission of this document is a requirement. You may hand this to your potential future landlord, a bank or other agencies.

The submission of this letter is important as it becomes a basis for the requester to make their decision. There are two main types of these letters:

  • Self-Written Letter
    If you run a business by yourself, then you don’t have a choice but to write this salary verification letter for yourself. You may also compose the letter then ask your employer to sign it. Just make sure to print the document out on a letterhead.
    Aside from providing your salary in the letter, it’s also appropriate to include relevant information about your employment. A self-written letter serves the same purpose as a letter that your employer writes for you. If applicable, you may also add information about additional sources of income.
  • Letter Written on Your Behalf
    If for some reason you cannot write the letter yourself, you may request the document from your employer. For this, you may have to share your reason for making such a request. A letter coming from your employer should get printed on a letterhead with the company seal stamped on it to make it look official.
    These letters generally contain significant information that includes your complete name, your job title, your current salary, and your employment status. Some other information may appear too, but these are the most important. Lastly, the person who will issue the letter should conclude it with their own contact details and signature.

Salary Verification Letters

How do I write a proof of income letter?

It is standard practice that you will have to verify your income when applying for a loan, a new credit line, a rental agreement or a lease. This verification usually comes in the form of a proof of income letter composed by yourself, by your employer, by your company’s accountant or even a social security caseworker.

Since this income verification letter serves as official proof of your income, it becomes important that it contains certain information. If you intend to write the letter yourself, you can use the following steps as a guide in terms of the information to include and how to compose the proof of income form or letter:

  • Start by adding your basic information and contact details
    Included here will be the complete name, business address, email address, and mobile number of the person responsible for writing the income verification letter.
    If you’re writing a self-written verification letter, the information you will provide will refer to you. If you’re self-employed, you should also include the name of your business and other relevant information. Place this information at the top-left part of the document. Make sure to separate this from the next part of the letter by adding one line underneath.
  • Briefly explain your letter’s purpose
    You can do this step using a memo format just below your contact details. This short message about the subject helps the reader understand quickly that they must continue reading since the subject is very important.
  • Start your letter with a proper salutation and the recipient’s proper name
    If you’re in doubt as to who you should officially address the letter to, you can use the standard salutation: “To Whom It May Concern.” Always remember to keep your greetings official and businesslike. Always bear in mind that this is not a casual letter and as such, it should not start with an informal or casual tone.
  • Give a self-introduction along with an explanation of why you have written the letter
    For this, it’s recommended to be as concise as possible. Remember that your letter is just one letter that the recipient will read in a day. Get to the point succinctly so you won’t have to waste their valuable time.
  • Provide the details about your income
    The details should include how much your income is, how you acquire this income, how long you have made that much money, and how long you can anticipate to maintain the same amount of income or more.
  • Include information about any additional sources of income outside of your primary employment
    You may have several other income sources like pensions, annuities, gifts or government benefits. Also, include the amounts and the frequency of these income sources.
  • If you have attached any documentation to your letter, include a statement at the end of your letter
    If you have other documents attached to your letter, you can help the reader transition to these by requesting them to examine the attached documentation as these would support the claims that you mentioned in your letter. Mentioning these additional items ensures that the reader will know that you have attached supplementary documentation.
  • Express your gratitude to the recipient for reading your letter
    You have to close the letter formally with the appropriate salutation, followed by your complete name. If your plan is to print your letter, make sure to leave two blank spaces between your name and the formal closing. This should be enough room for you to affix your signature right on top of your name.
  • If you plan to send a printed letter, affix your signature by hand
    If you plan to send your letter through email, you may opt to attach an electronic signature to it first.