Proof of unearned income is any document that verifies money you receive from sources other than a job, such as interest, dividends, rental payments, pensions, Social Security, unemployment, royalties, alimony, or trust distributions. The IRS treats unearned income as all income other than wages, salaries, and pay for work you performed, including capital gains, rents, royalties, and annuity payments.1Internal Revenue Service. Publication 525, Taxable and Nontaxable Income Because none of it comes with a W-2 or pay stub, lenders, landlords, and benefits agencies rely on a different set of records: IRS 1099 forms, benefit letters, tax return schedules, court orders, and recent bank or brokerage statements.
What follows is the paperwork that actually gets accepted, sorted by where the money comes from.
Investment Income: Interest, Dividends, and Capital Gains
Financial institutions issue three main forms each year. Form 1099-INT reports interest from savings accounts, certificates of deposit, and similar bank products.2Internal Revenue Service. Instructions for Forms 1099-INT and 1099-OID Form 1099-DIV reports dividends paid to shareholders. Form 1099-B documents the proceeds from selling stocks, bonds, or other securities. You should receive them by early February for the prior tax year.
Tax forms alone usually aren’t enough for a lender or housing agency. Monthly or quarterly brokerage statements confirm the current value of your holdings and show that investment income actually hit your accounts. Two consecutive months of statements is a common minimum. Under Fannie Mae guidelines, brokerage documents can be no more than four months old on the date you sign the loan.3Fannie Mae Selling Guide. Allowable Age of Credit Documents and Federal Income Tax Returns
For capital gains, hold on to trade confirmations and records of reinvested dividends. The cost basis your broker reports on Form 1099-B determines the size of the taxable gain, and those records let you verify it. Gifted or inherited securities follow different basis rules, and IRS Publication 550 lays them out.
Retirement, Pension, and Annuity Payments
Distributions from pensions, 401(k) plans, IRAs, and annuities are reported on Form 1099-R. The form covers profit-sharing plans, traditional and Roth IRAs, insurance contracts, and similar retirement vehicles.4Internal Revenue Service. About Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts Box 1 shows the gross distribution and Box 2a shows the taxable amount, which matters for annuities and after-tax contributions where part of each payment may be tax-free.5Internal Revenue Service. Instructions for Forms 1099-R and 5498
For an application in progress, a statement from the pension administrator confirming the monthly payment is often more useful than last year’s 1099-R, because it reflects what you’re receiving now.
Social Security
Social Security benefits are documented on Form SSA-1099, with the net figure in Box 5.6Internal Revenue Service. Social Security Income You can download a replacement through your online my Social Security account starting February 1 each year.7Social Security Administration. Get Tax Form (1099/1042S) Supplemental Security Income is not taxable and does not generate a 1099.
For a current-year proof, request a benefit verification letter from the Social Security Administration. It states your current monthly payment and is the document most mortgage lenders and landlords will accept.7Social Security Administration. Get Tax Form (1099/1042S)
Unemployment Compensation
Unemployment benefits are reported on Form 1099-G, sent by the paying state agency each January.8Internal Revenue Service. About Form 1099-G, Certain Government Payments Box 1 shows total benefits paid during the calendar year.9Internal Revenue Service. Form 1099-G, Certain Government Payments The same form also covers state income tax refunds and taxable government grants.
Mid-year, when the 1099-G hasn’t been issued yet, your state agency can produce a benefit determination letter or a payment history that shows weekly or biweekly disbursements.
Rental Income
Two documents do most of the work: Schedule E of Form 1040 and the lease. Landlords report rental income and expenses on Schedule E, and mortgage underwriters treat it as the primary record of rental history. Most lenders look at two years of Schedule E filings and focus on net profit after expenses and depreciation.10Fannie Mae Selling Guide. Rental Income
A signed lease agreement is evidence of expected future rent, useful when you recently bought the property or don’t have a full year of tax history.10Fannie Mae Selling Guide. Rental Income Bank statements showing regular rent deposits and copies of rent receipts confirm the payments are actually arriving.
One boundary worth knowing: if you rent out a home you also use personally for fewer than 15 days in the year, that rental income doesn’t have to be reported. The IRS treats the property as personal, and no Schedule E is required.11Internal Revenue Service. Publication 527, Residential Rental Property
Partnership, S-Corp, and Trust Income
Passive income from a partnership or S-corporation shows up on Schedule K-1. Partnerships issue Schedule K-1 from Form 1065, breaking out each partner’s share of ordinary business income, rental income, interest, dividends, and capital gains.12Internal Revenue Service. Schedule K-1 (Form 1065) 2025 S-corporations issue their own K-1 from Form 1120-S covering the same categories.13Internal Revenue Service. Schedule K-1 (Form 1120-S) 2025 Lenders generally want at least two years of K-1s plus the entity’s full tax return and evaluate net income after depreciation and non-cash expenses.
Beneficiaries of trusts and estates receive a Schedule K-1 from Form 1041. It itemizes the beneficiary’s share of trust income: interest in Box 1, ordinary dividends in Box 2a, capital gains in Boxes 3 and 4a, and other portfolio income like royalties and annuities in Box 5.14Internal Revenue Service. Instructions for Schedule K-1 (Form 1041) for a Beneficiary A letter from the trustee stating the amount and frequency of distributions supplements the K-1 when you need to show current income rather than last year’s filing.
Royalties
Royalties from books, music, patents, natural resources, or licensing agreements are reported on Form 1099-MISC, Box 2. The payer must file the form for any recipient who receives at least $10 in royalties during the year.15Internal Revenue Service. About Form 1099-MISC, Miscellaneous Information Royalty income is then reported on Schedule E, the same schedule used for rental property. For mid-year proof, copies of the licensing or mineral-rights agreement together with bank statements showing deposits will typically bridge the gap until the next 1099-MISC.
Alimony and Child Support
The foundational proof is the court order or divorce decree showing the payment amount and duration. Mortgage lenders and public assistance agencies typically want that alongside bank statements or deposit records confirming the payments are actually being received. When payments have been inconsistent, some agencies will ask for verification through a child support enforcement office.
Note that alimony under divorce agreements finalized after December 31, 2018, is not taxable income to the recipient and generates no tax form. For agreements finalized on or before that date, alimony remains taxable and appears on the recipient’s return.
Gambling Winnings
Winnings at or above the reporting threshold are documented on Form W-2G. For payments made in 2026, the threshold is $2,000, adjusted annually for inflation. That single threshold now applies across game types, including bingo, slot machines, keno (after deducting the wager), and poker tournaments (after deducting the buy-in).16Internal Revenue Service. Instructions for Forms W-2G and 5754 Winnings below the threshold are still taxable, so if you’re documenting them you’ll rely on your own records.
Gifts and Inheritances
A large cash gift used toward a down payment on a home usually needs a signed gift letter. The letter should identify the donor, state the dollar amount, describe the donor’s relationship to the recipient, and confirm that no repayment is expected.
Gifts or bequests from a foreign individual that exceed $100,000 in a tax year must be reported to the IRS on Form 3520. For gifts from foreign corporations or partnerships, the reporting threshold was $19,570 in 2024 and is adjusted annually for inflation.17Internal Revenue Service. Gifts From Foreign Person Failing to file Form 3520 when required can trigger significant penalties, even though the gift itself is not taxable.
How Recent Documents Have to Be
Documents go stale. Under conventional mortgage lending guidelines, all income documentation, including brokerage statements, benefit letters, and bank statements, must be no more than four months old on the date you sign the loan.3Fannie Mae Selling Guide. Allowable Age of Credit Documents and Federal Income Tax Returns If yours are older, the lender will ask you to refresh them before closing. Rental applications and public benefits programs set their own freshness rules, which vary by agency.
What to Keep on Hand
Assemble a folder, physical or digital, that contains at least two years of tax returns with all schedules, two to three months of recent bank and brokerage statements, and copies of any benefit letters, pension statements, court orders, or trust documents that establish ongoing income. Digital copies you can send quickly are worth the setup time. When a lender, landlord, or agency requests documentation, the applications that move fastest are the ones where the paperwork is already in one place.