What counts as proof of income for a personal loan?

Primary income documentation: Pay stubs (most recent 1-2, showing YTD earnings), W-2 forms from the past 1-2 years, or federal tax returns (Form 1040) for the most recent 1-2 years.

Self-employed and 1099 earners: Two years of federal tax returns (Schedule C), plus recent bank statements (3-6 months) showing consistent deposits. Some lenders also accept profit and loss statements prepared by a CPA. Lenders typically average the two years of net income, not gross.

Alternative income sources accepted by most lenders: - Social Security benefits: SSA award letter or recent benefit statement - Pension/retirement: Pension award letter or 1099-R - Disability (SSDI/SSI): Award letter showing monthly benefit amount - Rental income: Schedule E from tax returns or signed lease agreements - Alimony/child support: Divorce decree or court order, plus 12 months of deposit evidence - Investment income: Brokerage statements showing dividends and interest - Offer letter: A signed offer letter with a start date within 30-90 days works at many lenders

Bank statements as backup: Most lenders ask for 2-3 months of bank statements to verify income deposits align with claimed income, even when primary documents are provided.

Digital verification: Many online lenders now use Plaid or similar services to instantly verify income and bank account history. This speeds approval but you must consent to read-only access to your account data.