can i use a letter from my employer for verification of income?

[Anonymous]

Would this work? I get a set amount a month that I can't really verify otherwise

[203bravo]

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@Anonymous wrote:

Would this work? I get a set amount a month that I can't really verify otherwise

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Don't know why this wouldn't work -- would you like me to write this letter for you and if so how much would you like me to say you are making annually?

[pizzadude]

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@Anonymous wrote:

Would this work? I get a set amount a month that I can't really verify otherwise

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Normally you would get a paystub or statement from your employer which would suffice for income verification.

Are you saying that you don't get a paystub ?  Is your employer paying you in cash ?

[Anonymous]

Its an actual employer, I get cash weekly for doing collections at a construction company. I dont deposit into my bank but i can start doing so, but how many months of statements would I need?

[cdtotten]

The problem is, and correct me if I am wrong, but you aren't paying taxes on this income. You are being paid cash, under the table, by an employer. If this is the case, then you won't get approved for a car loan, as you don't have verifiable income. A letter from an employer doesn't work because anyone can write a letter and say you are making anything you want... doesn't mean anything. Pay stubs show a verifiable source of income, with proper taxes taken out. The lender has right to be cautious, as without verifiable income, how do they know you are going to pay on the car note?

Additionally, if this is the case, then tax evasion is a very serious crime. You and your employer could get in very serious trouble for this arrangement. I wouldn't do something to draw attention to myself (i.e. applying for credit), if this is the case. If it is not, then disregard.

[pizzadude]

I agree that this situation is problematic ~ first of all you aren't even "on the books" as an employee of this company.   At best you are a contractor, but that depends on if the company is going to give you a 1099.    Are they doing this, or is this strictly a cash job, with no records ??

[CS800]

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@Anonymous wrote:

Would this work? I get a set amount a month that I can't really verify otherwise

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I have heard of this working. Some years ago, a new guy did get a letter from the director as income. They called the director up to confirm. The thing is, anyone could claim to be 'The Director' . It was from a local CU

[webhopper]

What is the purpose of him paying in cash and not providing you a 1099. Typically business will want to send the 1099 to contractors, so that they can deduct those expenses.  

Even waitresses have to pay taxes on tips received in cash left on the table...   Did you not file taxes on any of this money that you're bringing in? 

[Anonymous]

Considering the tax year just ended, you should be receiving a 1099-MISC even if you're an 'independent contractor'. That's probably more legitimate than any letter from an employer.

If you're an employee (even getting paid in cash), you should receive a W2. If not, you should receive a 1099-MISC. If you don't get either, it sounds like tax evasion, either on your part of the employers. Assuming you got paid more than $600 last year, they HAVE TO provide you with one or the other. Either way, you're going to get shafted if you get caught for it, even if it's technically the employer's fault. Don't make that mistake.

If you don't pay taxes on the income, it's not verifiable income, and I can imagine the only lenders that would accept that are either massively subprime and shady, or totally clueless.

I don't want to come off as preachy, but since I have to deal with sending out 1099's for the first time this year, I'm starting to understand how strict the IRS is about their reporting requirements.

[Anonymous]

All legalities aside, there is no tax evasion. I requested to be paid in cash. I spoke with my boss on Friday and said I'll be getting a 1099 no later than Tuesday of the following week.

My brother, who owes an insane amount in hospital bills got an auto loan this past week with no money down and a letter from his employer, but it turns out that the only reason he got the loan was cause he owns his home free and clear. Thats what drew my curiosity.

All the places that accept letters are some never-heard-of lenders and the interest rate that comes with it is a monstrosity. I'm not in the NEED for an auto loan and soon the last of my negs will fall off and in about 6-8 months I will have no inquiries + I'm going to deposit all of my paycheck into the bank since a lot of lenders accept bank statements as proof of income.

So a letter will work, but it is not worth it.