What Is an Income Verification Letter?
An Income Verification Letter is a formal document, usually completed by the employer at the request of the employee, that verifies the salary the employed individual receives. It can be required in various life situations when the employee has to prove they receive a salary and the earned amount will be enough to support their upcoming expenses. This document is often required by various financial institutions and money lenders when the employee is preparing to apply for a loan and by property managers and landlords who need to be sure the prospective tenant has enough money to pay for the rented property.
- Verification of Income Letter.
For a full list of Income Verification Letter templates please check out our library below.
How to Write a Letter of Income Verification?
Generally, the employer is asked by their current employee to prepare a Letter of Income Verification. Follow these steps to complete an Income Verification Letter template:
- State the name of your organization, its mailing address, and telephone number.
- Indicate the employee's name and their job title. Record their type of employment - full-time or part-time. Enter the date they began their employment with you and the hours they work per week.
- Write down the employee's wage and the frequency of payments. If the employee gets any bonuses or commissions, yet you cannot provide a precise amount because it fluctuates, you can describe the performance-related pay using percentages or indicate the employee's results of the last few months.
- Sign and date the form and offer the letter recipient to contact you if they have any further questions about your employee. You can add a company seal to the document to make it look more official. Once the letter is prepared, give it to the employee or directly send it to the intended recipient.
Sometimes, you have to write your own Income Verification Letter. If you do not have an employer, here are some tips on how to draft an Income Verification Letter for Self-Employed:
- Greet the recipient of the letter and describe the reason for writing the letter. You must state your profession and explain why you are the one who provides them with this letter.
- Outline the details regarding your income. Unlike a traditional Letter of Income Verification, in which the employer only indicates how much you earn by being their employee, you need to list all sources of income - wages, pensions, benefits, annuities, gifts, etc. This information must be accurate since the recipient has a right to check your statement more thoroughly.
- If you have any idea about your future income or upcoming projects that will improve your financial situation, you can describe them in the letter as well.
- Attach supporting documentation - the latest tax return and a bank statement will be enough to demonstrate how much money you have earned.
- Sign and date the letter. Send it to the recipient via certified mail to obtain a receipt.
Still looking for a particular template? Take a look at these related templates below:
This letter verifies the amount of money an individual receives as a self-employed worker.