Are you ready to cut through red tape—and slash the amount you pay in interest by 5%, 10%, even 25%? It’s entirely possible, thanks to a little-known trick: you can use copies of past income taxes to prove your income, and you can use that proof of income to put the squeeze on lenders who want to squeeze every last dime out of you.
How?
Let’s take it one step at a time:
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Figure out how you’ll benefit when you get copies of past income taxes: do you want to save money on personal loans—apartment rentals—vehicle loans—other consumer loans—fees for professional services? Whatever you want to save money on, start thinking of savings plans now! You don’t want to miss an opportunity to cut down on your monthly bills.
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Decide which tax years you need to get copies of past income taxes for: you don’t need to give anyone your life story in dollars and cents, but you don’t want to make them suspect you’re hiding anything, either. Usually, it’s best to get at least three years worth of copies of past income taxes. However, if your income bounces around a bit, you may prefer to go back further.
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Get copies of past income taxes: You can call up the IRS and ask, but there’s an easier way. Out of all the tax websites out there, a few specialize in past year tax issues. And if you ask for the wrong document, you could end up paying $50 or more—for every year of records you want! Don’t get burned by asking for the wrong document: use online tax professionals who can help you target exactly the documents you want, so you can begin to save right away.
Once you’ve got your hands on copies of past income taxes, you can move on to the next step: using them. Whenever you negotiate a debt, always offer to provide proof of income, and always use it to demonstrate that you can make steady payments. You’ll see more generous terms, lower interest rates—and friendlier services. After all, who doesn’t want to work with someone who offers extra information up front?
