Which of the following documents is NOT acceptable for verifying self-employed income?

Which of the following documents is NOT acceptable for verifying self-employed income?

• A. Invoices to customers
• B. Recent W-2 forms
• C. Copies of current contracts
• D. Letter from a CPA

Answer: (B)

W-2 forms are used to report wages for employees, not for self-employed individuals. Self-employed income verification requires documentation that reflects the earnings and financial position of the business owner rather than standard employee compensation. Acceptable documents for verifying self-employed income typically include invoices to customers, copies of current contracts, and letters from a CPA, as these provide direct insights into the business's income and operations. Invoices and contracts show ongoing work and revenue potential, while a CPA letter provides professional validation of income. Thus, W-2 forms do not apply to self-employed individuals, making them an unsuitable option for verifying self-employed income.

W-2 forms are used to report wages for employees, not for self-employed individuals. Self-employed income verification requires documentation that reflects the earnings and financial position of the business owner rather than standard employee compensation. Acceptable documents for verifying self-employed income typically include invoices to customers, copies of current contracts, and letters from a CPA, as these provide direct insights into the business's income and operations. Invoices and contracts show ongoing work and revenue potential, while a CPA letter provides professional validation of income. Thus, W-2 forms do not apply to self-employed individuals, making them an unsuitable option for verifying self-employed income.