Self-Employed, how to show income for a new car/house ?

Hi I am self employed as a tattoo artist and I get paid cash mostly. I save my cash at home and don’t use a bank account. How do I show my income if I wanted to get a loan for a new car ?

15 Answers

Relevance
  • Reena
    Lv 7
    3 weeks ago

    You start by registering your business and keep books, pay taxes and put your money into a bank account.

    • Login to reply the answers
  • Sudz
    Lv 5
    1 month ago

    It really is quite simple. 

    1) Apply for an EIN number at IRS.gov website for your business. * (See notes below)

    2) Open either a bank account or credit union account which includes delineation of personal checking and savings accounts, business checking account. ** (See notes below)

    3) File your tax returns for your prior years income/wages i.e., 2018, file this year for 2019 and, then file your tax return for futurity.  The IRS has forms for the prior years tax returns dating back at least 7+ years, do the same for state tax returns, as well. *** (See notes below)

    * 1) Seek professional assistance thru the bank/credit union first, and make sure you meet the requirements first before applying for the EIN. 

    ** 2) Research the business compliance costs for your state and county to see if you are ready for the associated annual costs. 

    *** 3) Think about using the current IRS.gov tax return estimator prior to filing regressively to see if you may be owed a refund or if you may owe taxes based on the standard deduction or any business deductions such as your shop, booth, transportation, medical, and all eligible related business expenses or depreciating assets that may modify/adjustments to your tax return. 

    • Login to reply the answers
  • 1 month ago

    Haha. Get a real job and pay taxes like the rest of us or walk.

    • Login to reply the answers
  • Eva
    Lv 7
    1 month ago

    That's the problem when you don't report your real income on a tax return. You'll need 2 - 3 years of tax returns. By not using a bank account, you only cause problems for yourself.

    • Login to reply the answers
  • How do you think about the answers? You can sign in to vote the answer.
  • 1 month ago

    They might consider your tax returns.

    • Login to reply the answers
  • 1 month ago

    Tax Returns (3 years worth, probably)

    If you aren't paying taxes on your income, you won't qualify for any loans for anything.

    • Login to reply the answers
  • 1 month ago

    maybe you can take a picture of your money

    • Login to reply the answers
  • 1 month ago

    You do need to have some way of proving your business - what you take in - money-wise.  You should be keeping a set of books that keep of track of all of income and then that income should be filed in a tax return - annually.  If you don't do that and do it properly and accurately, then at some point, the IRS is going to be breathing down your back, perhaps, 5 or 6 years down the road, maybe 3 years down the road.  Your tax return will work as your proof of income.

    • Login to reply the answers
  • Anonymous
    1 month ago

    Tax returns, good credit & good down payment.

    • Login to reply the answers
  • Judy
    Lv 7
    1 month ago

    You show them your last two years tax returns. If you illegally evaded taxes, you screwed yourself out of being eligible for a loan or mortgage.

    • Login to reply the answers
Still have questions? Get your answers by asking now.