Income Verification Letter Samples (Basic Guide & Examples)

Before accessing and leveraging some privileges, you will usually have to provide proof of your employment, i.e., where exactly you work, in what position, and for how long. Examples of these include applications for loans, enrolments in mortgages, and the purchase of assets on credit.

To be able to supply this vital piece of information, your employer has to draft an income verification letter. This is a letter that basically states every detail of your employment, like the company you work for, your job title, salary, and work experience. We take a look at it in detail here below.

Purpose of the Income Verification Letter

This letter serves the following purposes:

Identifies your Employer

First, it identifies your employer. This is the name of the organization that you work for. It also sheds more light on your employer by revealing the mission and the kind of work that it participates in.

Reveals your Job Title

Next comes your job title. The job title is basically a summary of the work you do in that organization. It also gives a peek into your position or rank within the company organogram.

Explains your Work Experience

A typical income verification letter also explains your work experience. For how long have you been working for that firm? This piece of information is closely followed by the start and the end dates of your employment contract.

Explains your Suitability for the Privilege

This letter is often sought to vouch for your suitability for a particular privilege. For instance, it may be used to support your qualification for a loan or hire purchase scheme, to name but a few. The letter hence states how qualified you are for that privilege.

Sheds more light on your own competence

Though outside its scope, the letter may also shed more light on your own competence and performance in the job. That may boost your profile and overall credibility altogether.

How to Verify the Income

If you ever find yourself in a state where you have to verify the income of a person, you have the following resources to consider making use of:


Check out with the employer of the person whose income you want to verify. Let the employer furnish you with all the details that pertain to the pay and the privileges that the employee is entitled to.

Tax Returns

The tax returns also provide a peek into the income levels of the applicants. That is because taxes are, for a large part, levied as per the income levels of the taxpayers. To make use of this, you will have to consult the Internal Revenue Service.

Bank Statements

If you can, check out also for the bank statements of the person whose income you want to verify. These statements reveal the flow of money that the person under scrutiny has been experiencing or enjoying all the while.

Credit Report

The credit referencing bureaus also have the ability to give you a rough picture of the income level of a person of interest. Most lenders peg the amounts advanced to the ability of the lenders to repay. This, in turn, depends on the income levels of these borrowers.

Business Entity

Does this person own or operate a business? If yes, you might want to dig deeper into his business. Particularly, check out the cash flow of the business as it is the one that gives you a glimpse of just how much the owner might be worth.

What to Include in an Income Verification Letter

After verifying the income levels of the clients above, you now have to proceed to draft a letter that captures all those details. A letter of that kind will typically incorporate the following pieces of information:

  • Name and Address of Employer/Verifier: The name and the address of the employer or verifier stand out tall. They are placed at the top left corner of the letter of this kind. It is these twin details that showcase the writer of the letter.
  • Name and Address of Applicant: Next, come to the name and the address of the applicant. The applicant here is the person who seeks to know more about the amount of money that the employee under scrutiny makes with the firm he is presently employed.
  • Income and Employment Details of the Employee: Now to the core of the letter. The employment and the income details of the employee are showcased clearly. These details cover the following areas:
    • Name of employee
    • Title of employee
    • Type of employment (full-time or part-time)
    • Hours worked per week
    • Wage
    • Payment frequency
    • Perks, e.g., bonus, benefits, gratuity e.t.c.
    • Contact Details
  • Signature and Date: Lastly, the letter has to be dated and signed. Preferably, it should also be stamped to grant it the official character that letters of these kinds ought to acquire and assume.

Income Verification Letter Format

To help you to draft one for yourself, we leave you here with a general format that you may use for your income verification letter:

Your Name

Your Address

Your City, State Zip Code

Your Phone Number

Your Email






City, State Zip Code

Dear Mr. /Ms. Last Name:

RE: Income Verification Letter

This is to verify that ______ (name of the employee) is a duly employed by us and has been working for us for _ (specify the duration of time that the employee has been working for you) in the capacity ________ (explain the capacity of employment).

His/her contract is ____ (full time or part time) and takes roughly _ (number of hours each week). This earns him a gross pay of ______ (declare the amount).

Aside from the basic pay, he/she is also entitled to the following benefits________________ (perks e.g. bonus, benefits, gratuity).

Kindly accord him the support or privilege he is presently jostling for.


Your Name



Income Verification Letter Sample

To drive the point home, we now leave you with a sample of the income verification letter for you to draw your inspiration from:

Mr. Dennis Ferguson,

Human Resource Manager – Supreme Furnishings Inc.,

237 Don Gaspar,

Room 116,

Santa Fe, NM 87501

June 28, 2020,

Mr. Justin Bloggmutt,

New Mexico Realtors Inc.,

201 W.,

Marcy St,

Santa Fe NM 87501

Dear Sir,

RE: Income Verification Letter

I draft this letter to verify that Agnes Michael is a bona fide employee of our company, Supreme Furnishings Inc., in the capacity of Sales Officer. She has been a member of our team for roughly eight years now and has proved exceptionally reliable in her work.

Her gross annual Income is $38,000. On top of that, she is also entitled to a raft of benefits like housing, commuter, healthcare, and entertainment. All these add up to $12,000 before tax.

Any assistance accorded to her will be highly appreciated. Kindly feel free to reach us for more clarification if need be.


Mr. Dennis Ferguson,

Human Resource Manager – Supreme Furnishings Inc.

Free Templates

    Frequently Asked Questions (FAQs)

    This subject of income verification is shrouded in some controversy. We devote this stage to examining the top questions that are consistently asked and what their answers are:

    What Is Considered A Verification Of Income Document?

    Bank statements, pay stubs, federal tax returns, wages, and tax statements, as well as bank statements, are largely hailed as income verification documents.

    How Do I Show Proof Of Income If I Get Paid Cash?

    You may use a host of documents like invoices, tax statements, letters from your employers, and duplicate receipt ledgers.

    Are Invoices Proof Of Income?

    YES, it is! But only under strict circumstances. In many cases, it is mainly used when you are paid in cash rather than via a salary bank account.


    Now that you have known just about everything you need to know about the income verification letter, is it not in order to implement the same? Read the explanations keenly and then put the same into practice. While doing that, you should also spread the news far and wide for others to enjoy the same benefits.

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