The full explanation
There are several types: the tax return transcript shows most line items from your Form 1040 as filed and usually meets the needs of mortgage lenders; the tax account transcript shows changes made after you filed; the wage and income transcript shows what your W-2s and 1099s reported. You can get one through your IRS online account, by mail, by phone or with Form 4506-T.
An example
The lender asks Ramón for proof of income. Ramón signs in to his IRS online account, downloads his tax return transcript for free and sends it over.
You will see it in…
- Your IRS Individual Online Account
- A mortgage lender's document list
- Form 4506-T, to request one by mail