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Author Topic: Tax Form Earnings Discrepancies  (Read 1556 times)

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« on: March 06, 2020, 07:53 »
+2
I posted this in another forum and a friend with the same issue contacted the tax team but didn't get any replies yet, so I was wondering if other people also have this very important issue.

I just got my 1099 form, and it says that I earned more than what it says on my activity on the stock contributor website statistics (more than $300). The difference is exactly the amount of negative adjustments made in February 2019 to my account for incorrectly calculated license royalties. These adjustments have affected many people. This means that the amount on the 1099 form is overstated, and I have to pay taxes on the negative adjustments that I didn't earn, if this is the case. Anyways, I was just wondering if others have the same issue or if I'm mistaken somewhere. Thank you.


« Reply #1 on: March 08, 2020, 08:48 »
+1
Same here.

I see nearly $500 difference between the 1099 and the total earnings for 2019, shown on my AS stats. On February 15, 2019, I had exactly the same amount refunded (to the cent)

This is obviously a mistake.

Maybe Mat Hayward can chime in and explain what can be done about this.
« Last Edit: March 08, 2020, 09:45 by Zero Talent »

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  • Author of best selling "Get Started in Stock"

« Reply #2 on: March 08, 2020, 09:47 »
+1
Yes, mine is about $30 out (on $5777). I don't recall what the refunds actually were last year, so I can't check that. Where do they appear in the Adobe reports?

Steve

« Reply #3 on: March 08, 2020, 10:24 »
0
Yes, mine is about $30 out (on $5777). I don't recall what the refunds actually were last year, so I can't check that. Where do they appear in the Adobe reports?

Steve

Select "Activity", then February 15, 2019 and "Daily"

On the right, at the bottom of your sales list, you will see the refunds in red. Manually add them and you will see that their total is matching extacly the difference between your 1099 and your yearly 2019 stats obtained by selecting "Earnings", any date between 2018 - 2020, and "Yearly".

« Reply #4 on: March 08, 2020, 15:13 »
0
I just came back from my accountant.
For those interested, please be informed that she filed that nearly $500 refund under Schedule C, Part I,  line 2: Returns and allowances.

« Reply #5 on: March 09, 2020, 09:37 »
0
I just came back from my accountant.
For those interested, please be informed that she filed that nearly $500 refund under Schedule C, Part I,  line 2: Returns and allowances.

That is possibly the correct thing to do, I just wish that we were notified that we would have to do it this way beforehand by Adobe. Now, a lot of people who filed may have to do amendments.

« Reply #6 on: March 09, 2020, 13:50 »
0
I just came back from my accountant.
For those interested, please be informed that she filed that nearly $500 refund under Schedule C, Part I,  line 2: Returns and allowances.

That is possibly the correct thing to do, I just wish that we were notified that we would have to do it this way beforehand by Adobe. Now, a lot of people who filed may have to do amendments.

I'm with you.
Some sort of acknowledgment from Adobe/Mat would be nice.


« Reply #8 on: March 10, 2020, 12:13 »
0
I am looking into this right now and will update here when I have information to share.

Thank you,

Mat Hayward

Thanks, Mat!
Besides this discrepancy, while you're at it, maybe you can also check why Adobe is the only agency (among the ones I'm working with) sending 1099s that are NOT matching the received Paypal total for the year. It has always been like this. For all other agencies, my Paypal totals always matched the 1099s, to the cent.

I suspect that AS earnings are calculated based on the moment of the payment request, instead of the payment sent (or maybe even based on the date of sale?)

Thanks for clarifying.
« Last Edit: March 10, 2020, 12:16 by Zero Talent »

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  • Author of best selling "Get Started in Stock"

« Reply #9 on: March 10, 2020, 13:32 »
+1
I suspect this is based on the exact amount of sales in the year, rather than what the agency has paid out to you. I think that is an accurate way of reporting earnings.

Steve

« Reply #10 on: March 10, 2020, 14:55 »
0
I suspect this is based on the exact amount of sales in the year, rather than what the agency has paid out to you. I think that is an accurate way of reporting earnings.

Steve

Steve is correct, your 1099 should reflect all royalties paid into your account in the year. You receive a 1099 even if you never cashed out your earnings.

-Mat

« Reply #11 on: March 10, 2020, 17:16 »
+2
I am looking into this right now and will update here when I have information to share.

Thank you,

Mat Hayward

Thank you and am looking forward for the update, Mat!


« Reply #13 on: March 14, 2020, 10:52 »
+1
Thank you for your patience as I looked into this. The tax team has been made aware and is working on updating the 1099 forms for those impacted in the US by the canceled sales in February of 2019. The tax team has not submitted the first batch of 1099 forms to the IRS yet so these new forms will not say "corrected" fyi. The process of updating these forms is manual and a bit tedious so we ask for more patience. The process should be done within the next two weeks at the latest.

You can download your 1099 form from this link: https://236230.invoiceinfo.com/InvPay.php?reset=Y [nofollow]

I'll update this thread when the updated forms are ready to be downloaded. For now, the available form is the one you should have already received by mail.

Thank you,

Mat Hayward

Thank you so much for the update, Mat!


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  • Author of best selling "Get Started in Stock"

« Reply #15 on: March 25, 2020, 10:33 »
+2
Thanks Matt - and if anyone is wondering where to find that second number that you need to see or download your 1099, it is your Member ID which is at the bottom of the contributor account page when you are logged into the contributor site.

Steve

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« Reply #16 on: March 25, 2020, 11:05 »
0
Thanks Matt - and if anyone is wondering where to find that second number that you need to see or download your 1099, it is your Member ID which is at the bottom of the contributor account page when you are logged into the contributor site.

Steve

Looks like this



Here's the easy link:  https://236230.invoiceinfo.com/get1099.html
Takes you right to the 1099 request page.


« Reply #17 on: March 31, 2020, 11:17 »
0
Hello everyone,

I've learned that all affected 1099 forms have been updated and can be downloaded from the link posted above. Thank you again for your patience, it is much appreciated.

Stay safe!

Mat Hayward

Thank you, Mat!

I have a question about the new 1099 form. The sum is a bit less now than what it says on the activity statement for the year on the website, and those two numbers have always coincided the previous years. I was wondering if this is correct, and why the difference exists? I will email the tax team for this as well. Thank you. 

« Reply #18 on: March 31, 2020, 14:11 »
0
Hello everyone,

I've learned that all affected 1099 forms have been updated and can be downloaded from the link posted above. Thank you again for your patience, it is much appreciated.

Stay safe!

Mat Hayward

Thank you, Mat!

I have a question about the new 1099 form. The sum is a bit less now than what it says on the activity statement for the year on the website, and those two numbers have always coincided the previous years. I was wondering if this is correct, and why the difference exists? I will email the tax team for this as well. Thank you.

The number at the top of the portal isn't updated the same way as the new 1099 which was a manual process. The number you are seeing still includes the earnings that were eventually cancelled. Your updated 1099 is correct.

-Mat

« Reply #19 on: March 31, 2020, 15:55 »
0
Hello everyone,

I've learned that all affected 1099 forms have been updated and can be downloaded from the link posted above. Thank you again for your patience, it is much appreciated.

Stay safe!

Mat Hayward

Thank you, Mat!

I have a question about the new 1099 form. The sum is a bit less now than what it says on the activity statement for the year on the website, and those two numbers have always coincided the previous years. I was wondering if this is correct, and why the difference exists? I will email the tax team for this as well. Thank you.

The number at the top of the portal isn't updated the same way as the new 1099 which was a manual process. The number you are seeing still includes the earnings that were eventually cancelled. Your updated 1099 is correct.

-Mat

Ok, I was wondering about this since the difference is almost $50. I pay out my earnings on the first of every month, and the sum of my payouts for 2019 is closer to the number on the portal than on the new form. If I take into account the earnings on January 1, 2019 and January 1, 2020, which may have skewed the sum, it will differ by only $15 maximum, not $50. This tells me that on a cash basis, the 1099 form number is lower by almost $50 and likely still not correct.

Basically, I am trying to say that I received more cash than what the new 1099 form says, which means that I will underpay my taxes if I go by the number on the 1099 form.

I'm not trying to nitpick here, I'm just trying to make sure that everything is correct on my taxes and give a heads up if I notice anything different. If this has all been looked at in detail manually as you said, then I will just go by the new form for my taxes. Thank you for your answers and help, Mat.   

« Reply #20 on: March 31, 2020, 16:42 »
0
I've looked at and combined the negative adjustments again, and I realized that the difference on the amount written on the new 1099 form versus the amount on the portal is exactly the same as the number that I actually earned on the photos that were affected by the negative adjustments.

For example, on one image, I earned $46.57 - $40.75 (negative adjustment) = $5.82

However, the $5.82 was also subtracted in the 1099 form, if you see with what I'm getting at. This must be correct because these earnings in total combine to be exactly the difference that I am seeing.

The tax team must have mistakenly subtracted the entire amount of the sale from my earnings rather than just the negative adjustments. I sent an email to them with details in my case on this.


 

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