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 ?
- ReenaLv 73 weeks ago
You start by registering your business and keep books, pay taxes and put your money into a bank account.
- SudzLv 51 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.Source(s): https://www.irs.gov/businesses
- John AldenLv 71 month ago
Haha. Get a real job and pay taxes like the rest of us or walk.
- EvaLv 71 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.
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- StephenWeinsteinLv 71 month ago
They might consider your tax returns.
- Wayne ZLv 71 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.
- Pearl LLv 71 month ago
maybe you can take a picture of your money
- babyboomer1001Lv 71 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.
- Anonymous1 month ago
Tax returns, good credit & good down payment.
- JudyLv 71 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.