Alternative Documentation
When you get a loan, you have to prove you have the means to pay it back eventually. Basically, you need to show the bank that you're not a likely deadbeat.
You can perform this feat by providing income tax returns. These records show how much money you brought in during a given year, and your banker can then figure out whether you represent a safe investment. However, sometimes tax returns don't tell the full story.
If for whatever reason, tax returns don't give the best picture of your annual earnings potential, the banker might turn to so-called alternative documentation.
This sounds like some underground paperwork stored in the shadowy recesses of the dark web. Don't worry, it's not really that weird. Instead of income tax returns, the alternative docs in question include things like W-2s, pay stubs and bank statements.
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Finance: What is a 1099?0 Views
Finance, a la shmoop. What is a 1099? Well it's a tax form for the rest of us the
non fully employed, the non recipients of crappy health care and benefit plans, the [Man looks shocked at his medical bill]
non recipients of fancy corporate business cards those of us who choose to [Business card for Brett Corporate]
go it on our own as consultants, contractors, day laborers and
independents who self employ under the yoke of many masters trying to make our [A contractors diary]
own little way in the world, yeah. Corporations who hire contractors in
whatever form, must deliver to those contractors a form 1099 which outlines [Corporation giving out 1099s to contractors]
and stipulates the details of the job performed for the contractee. That 1099
is a direct conduit to the IRS holding out their arm to shake your hand and [The form 1099s are sent to the IRS]
then turning it 90 degrees to the right. [IRS's hand out expecting something]
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