Proof of Income Letter Templates & Examples

Proof of income, sometimes known as employment verification, is important to landlords, lenders, and several other entities. Your income can determine several things ranging from the amount you can get for a loan, rental housing to a health insurance plan. Before you can even access such services, the concerned parties will want to know your income. Proof of income is therefore important as it can impact different aspects of your life.

One of the most commonly requested documents is the proof of income letter, also known as income verification letter (or employment verification). A landlord may, for example, require a letter of employment or proof of income before renting or leasing an apartment. Before they can consider your mortgage application, all banks typically require proof of income or employment verification.

What is a Proof of Income Letter? 

Proof of income letter or employment verification is a common requirement by a third party to verify that you have the income necessary to meet your monthly payment obligations. Such payments can be a loan, rent, or mortgage. The letter proof’s your ability to meet certain financial obligations, that you indeed have a regular income.

A current or former employee may request an employment verification letter to certify their employment and salary history for a new employer. To streamline the process, many organizations have an official employment verification template that former and current employees can fill out.

Depending on the requesting entity, different documents are deemed more authoritative than others when it comes to income verification. Some may, for example, accept a pay stub, while others might require a combination of a recent pay stub and a certified copy of last year’s Internal Revenue Service (federal tax) return. 

Sample Proof of Income Letter

Exotic Exporters Limited

62728 Bridge Road

London, NEW

UK.

Subject: Proof of Income Letter for Jason Bond 

Dear Greenfield Housing Estate,

Please accept this letter as verification of employment and proof of income for Jason Bond at Exotic Exporters Limited. Jason joined our team in February 2018, and currently, he holds the position of Export Quality Manager. Jason is a full-time employee who earns $400 per week.

Please feel free to contact me at email @ web . com or Tel +000 000 0000 with any questions or concerns.

Best Regards,

[Signature]

Cate Denise

 HR Manager 


Proof of Income Letter (Templates & Examples)

Proof of Income Letter Format

Many states across the US have placed some restrictions regarding what type of information can or cannot be disclosed about a former or current employee. Before taking the employment letter-writing leap, first, check out the dos and don’ts in each state.

In general, if requested, the following details are allowed, and your employment letter should also follow the same format:

  • Employment dates
  • Job title
  • Salary.

Other than that, the proof of income letter should follow all formalities such as the address of the writer, date, official contact information, etc. The landlord doesn’t need anything fancy or overly wordy to confirm a potential tenant’s income — so just include the necessary details. A bank, however, may want more detailed information.

How to Write

Your employment verification or proof of income letter will be scrutinized by a third party and must, therefore, be treated as official or formal company documentation. The document should be on company letterhead and should include relevant company information and contact details such as:

  • Company name
  • Verifier’s name
  • Official address
  • City, state, ZIP code.

The body of the proof of income letter will depend on the needs of the requesting party. A landlord may, for example, only need verification of the current income of a potential tenant, whereas a new employer might need salary details and employment history.

If you don’t know the exact requirements of the requesting party, a standard letter of income or employment verification should include the following:

  • Employee name
  • Job title
  • Employment start date
  • Monthly/weekly salary
  • Annual bonus amount
  • End of employment date (if necessary)

The final paragraph should include the official contact details of the person responsible for verifying the information. Conclude the proof of income letter with your full name, job title, and signature.

How to Verify Income

Proof of income or employment verification letter is often the last step taken by a landlord before he hands over the house keys to a new tenant or bank before approving a personal loan or an employer dispatches an employment offer letter.

To protect themselves against false claims, most 3rd parties often require tenants or employees to verify their employment verification or proof of income letter with at least two other documents. Some of the documents that are generally accepted in the US include:

  • Paystubs
  • Wage and tax statements (W-2)
  • Tax returns (1040)
  • Bank statements
  • Benefit Verification Letter/Social Security proof of income 
  • Workers’ compensation letter.

In addition to the above supporting documentation, you can also get your income verification form/letter acknowledged by a public notary. Notarizing confirms its authenticity, adding an additional layer of trust.

Can I use an Offer Letter as Proof of Income?

Most landlords require a letter verifying your employment or proofing your income. But what do you do when you are newly employed with no employment history or past income to show? A new hire letter, officially written on company letterhead, is good enough. It tells a landlord about your expected income. The employment offer letter gives the landlord assurance that you are indeed capable of paying the expected rent going forward.

The major difference between an employment letter and an offer letter is that one states you work and make a certain income while the latter only shows promise. However, much as it’s not proof of income, an offer letter shows the landlord your employer’s commitment.

Key Points

A proof of employment letter, also known as an employment verification letter verifies the salary or income earned by an individual. The proof of income letter is often used when someone is applying for a personal loan/mortgage or seeking housing.

The requestor of the information uses the form to verify that a person has an income stream and secure job capable of affording the rental payment or repaying a loan. Besides proof of income letter, a landlord or lender can ask for additional supporting documents.

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