How mortgage brokers request a copy of last year’s tax return from borrowers
By Arthur Teboul, DokuTrak · Published
In short
For self-employed borrowers, lenders usually ask for the last two years of personal tax returns with every schedule, plus business returns if they own a share of a company that files its own. Ask for the full return as filed, not the summary page from tax software. Salaried borrowers may need returns too, depending on the loan program and their income.
Why mortgage brokers need a copy of last year’s tax return
For a self-employed borrower, the tax return is the income proof. The underwriter works from Schedule C profit, or from the business returns and K-1s, adds back items such as depreciation, and averages the two years. A drop in income from one year to the next gets questioned. The lender will usually request IRS transcripts to confirm the returns match what was filed.
Client guide: where to find a copy of last year’s tax return
What exactly to ask for
The complete Form 1040 for the two most recent years, with every schedule and statement attached (Schedule 1, C, E and so on), signed if the lender requires it. If the borrower owns a business that files separately, ask for its returns (Form 1065, 1120-S or 1120) for the same years. If the latest return is not filed yet, ask whether an extension was filed.
What to check when it arrives
- Every schedule referenced on the 1040 is attached: a Schedule C or E listed but missing sends the file back.
- The two years are the most recent ones, and the names and filing status match the application.
- Self-employment income is steady or rising across the two years, or a written explanation for a drop is on file.
Email to send your client
Replace the bracketed parts. The same text fits in the message of a DokuTrak request (up to 1,000 characters).
Subject: Your tax returns for the loan application
Hi [Client name],
Because you are self-employed, the lender will use your tax returns to document your income. Could you send your complete personal returns for the last two years, with every schedule and page, exactly as they were filed?
If you own a business that files its own return, please send those for the same two years as well. Your tax preparer can usually send you the full PDFs; the one-page summary from tax software is not enough.
Could you send them by [date]? If this year’s return is on extension, let me know and I will tell you what to send instead.
Thanks, [Your name]
Ask once. DokuTrak does the chasing.
- Your client uploads from one link, with no account and no password.
- Reminders go out on a schedule, by default 2, 5, 10 and 14 days after the request, until the file arrives.
- With AI review switched on in your workspace (it is off by default), each upload gets a first pass that flags a file that is not a copy of last year’s tax return or an unreadable or blurry scan. It says so when it is not sure.
- You accept every file or mark it for re-upload, and your client gets the note by email. The AI never accepts a file.