Which of the following documents is essential for a member with 1099 contracting income?

The key document for a member with 1099 contracting income is a verification of employment (VOE) from the contracting employer. This document serves to confirm the contractor's income and the nature of their engagement. It provides a formal acknowledgment from the employer regarding the terms of the contract work and can specify the amount and consistency of the income generated. For lenders and financial institutions, having a VOE is crucial in assessing the reliability and stability of a contractor's income, which is often less predictable than salaried positions.

While other documents, such as past year's business profit and loss documentation or personal bank statements, may also provide helpful insight into the contractor's financial health, they do not fulfill the essential role of formally verifying the income on which a loan application may depend. A signed employment contract is typically more relevant for W-2 employees rather than independent contractors, which reinforces that the VOE is the most pertinent document in this scenario.