Acceptable proof of income
Use this type of income list to determine which documentation can be used for proof of income. Call us at 800.KIDS.101 if you need help understanding this list.
Pay stubs
This is the preferred method of proof. The pay stub must:
- be dated within 60 days of received date
- include employee name
- include employer name
- have the paid date or check date
- have the current gross income amount
- have year-to-date (YTD) gross income amount1
1If there is no YTD on the pay stub, two or more pay stubs must be sent.
Letter from the employer
The letter from the employer must:
- be dated within 60 days of received date
- be on employer letterhead or signed by employer
- state the employer does not provide pay stubs
- employee’s name
- annual salary
- gross year-to-date (YTD) earnings as of the most recent pay
- if hourly:
- hours worked per pay
- hourly rate
- length of pay period (i.e. weekly, bi-weekly)
The letter is only acceptable if:
- the employer does not provide pay stubs
- you have just started job and have not received a pay stub
- you are a clergy member
Business ledger
The business ledger must:
- dated within 60 days of received date
- employee name
- employer name
- paid date or check date
- current gross income
- year-to-date (YTD) gross income amount
The business ledger is only acceptable if the employer does not provide pay stubs.
W2, 1099
Acceptable alternative if paystubs, a letter from the employer, or a business ledger cannot be obtained.
Examples of situations to use this type of income documentation are:
- subcontractors
- college professors
- consultants
- seasonal employees
Self-employment and sole proprietors
Prior year’s 1040 tax return, Schedule 1, Schedule C / Schedule C-EZ
These documents must include1:
- Schedule 1/Line 3 and Schedule C/Line 31 (or Schedule C-EZ/Line 3) should equal to ensure all income is accounted for2
- if an extension was filed, a copy of the extension and a Profit and Loss statement for the current year are needed
- any business income not being reported for tax filing purposes will require a year-to-date Profit and Loss statement
The Profit and Loss must include:
- business name
- time period covered
- should be prior to the current date but recent
- if this is a new business in the current year, the time period start date would be the date the business started
- gross income earned in that period
- line item list of business expenses for the period (insurance, gas, utilities, etc.)
- net profit figure for the period
1After mid-April, you must submit the current year tax return unless you have filed an extension.
2If they do not equal, all schedules may not be included.
Self-employment royalties and rental properties
Prior year’s 1040 tax return, Schedule 1, Schedule E/Part I
These documents must include1:
- Schedule 1/Line 5, Schedule E/Part I/Line 26, and Schedule E/Part V/Line 41 should equal to ensure all income is accounted for2
- if an extension was filed, a copy of the extension and a Profit and Loss statement for the current year are needed
- any business income not being reported for tax filing purposes will require a year-to-date Profit and Loss statement
The Profit and Loss must include:
- business name
- time period covered
- should be prior to the current date but recent
- if this is a new business in the current year, the time period start date would be the date the business started
- gross income earned in that period
- line item list of business expenses for the period (insurance, gas, utilities, etc.)
- net profit figure for the period
1After mid-April, you must submit the current year tax return unless you have filed an extension.
2If they do not equal, all schedules may not be included
Self-employment: Partnerships and S Corporations
Prior year’s 1040 tax return, Schedule 1, Schedule E/Part II
These documents must include1:
- Schedule 1/Line 5, Schedule E/Part II/Line 32, and Schedule E/Part V/Line 41 should equal to ensure all Schedule E income is accounted for2
- if an extension was filed, a copy of the extension and a Profit and Loss statement for the current year are needed
- any business income not being reported for tax filing purposes will require a year-to-date Profit and Loss statement
The Profit and Loss must include:
- business name
- time period covered
- should be prior to the current date but recent
- if this is a new business in the current year, the time period start date would be the date the business started
- gross income earned in that period
- line item list of business expenses for the period (insurance, gas, utilities, etc.)
- net profit figure for the period
1After mid-April, you must submit the current year tax return unless you have filed an extension.
2If they do not equal, all schedules may not be included
Self-employment: Farming
Prior year’s 1040 tax return, Schedule 1, Schedule F
These documents must include1:
- if an extension was filed, a copy of the extension and a Profit and Loss statement for the current year are needed
- any business income not being reported for tax filing purposes will require a year-to-date Profit and Loss statement
The Profit and Loss must include:
- business name
- time period covered
- should be prior to the current date but recent
- if this is a new business in the current year, the time period start date would be the date the business started
- gross income earned in that period
- line item list of business expenses for the period (insurance, gas, utilities, etc.)
- net profit figure for the period
1After mid-April, you must submit the current year tax return unless you have filed an extension.
Unemployment compensation (UC)
Award letter
This is the preferred method of proof.
Claim summary and/or benefit payment history screens
These documents must include:
- UC start date
- remaining balance
- weekly amount received
Workers’ compensation (WC) payments
Social Security Administration award letter
Use current payment received or award letter.
Workers’ compensation is excluded income unless both WC and Social Security disability payments are received.
Social Security benefits
Social Security Administration award letter, SSA-1099 form, form 1040 or form 1040a
These forms are only acceptable if 12 months of income are represented on the form.
Monthly retirement benefits
Award letter
This is the preferred method of proof.
IRS form 1099-R, or bank statement and prior year's 1040 tax return
These are not preferred methods of proof however, if an award letter is not available, these are an acceptable alternative.
Alimony
Decree of divorce, separation maintenance, or a written instrument to that decree
This is the preferred method of proof.
This must be court ordered.
12-month electronic payment history
This is not the preferred method of proof, but it is an acceptable alternative.
The 12-month electronic payment history must come from the PA Child Support Enforcement System. It cannot be a bank statement.
Interest
Form 1099-INT
This is acceptable documentation for this income type.
Previous year’s federal income tax return or statement from financial institution
This is acceptable documentation for this income type.
- Statement from financial institution
- Acceptable documentation if a 1099 or tax return are not available
Dividend
Form 1099-DIV
This is acceptable documentation for this income type.
Previous year’s federal income tax return or statement from financial institution
This is acceptable documentation for this income type.
- Statement from financial institution
- Acceptable documentation if a 1099 or tax return are not available
The North American Free Trade Agreement Transitional Adjustment Assistance Program (NAFTA/TAA Program) benefits
Award letter
This is the preferred method of proof.
Form 1099-G or check stubs
Acceptable alternative to the award letter.
Capital gains/losses and other gains/losses
Previous year’s federal income tax return
This is the preferred method of proof.
Other sources of income
Documentation that supports this income
Supply documentation that supports this income.