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Agency Based Discussion => Adobe Stock => Topic started by: total on December 06, 2016, 05:54

Title: Witholding 28% tax on fotolia income
Post by: total on December 06, 2016, 05:54: Hello,
I have noticed that fotolia took 28% of my income as a tax (I am from EU).
I have an ITIN number for about 10 years, but what happened is that my W8-BEN on fotolia was not updated. I did not recieved any notification, so I didnt know it needs to be updated.
Do you think that there is a way how to get back this money, or it is lost?

Thanks for any advice
Title: Re: Witholding 28% tax on fotolia income
Post by: jackboy on December 08, 2016, 04:23: I learned a few month ago you need to update your W8-BEN every three years
Title: Re: Witholding 28% tax on fotolia income
Post by: total on December 08, 2016, 05:43: yeah, I learned that too, but late.
Do you think there is a way how to get back this tax, or it is lost?
Title: Re: Witholding 28% tax on fotolia income
Post by: jackboy on December 08, 2016, 08:31: Sorry no idea ! Send a message to fotolia I asked them a question this morning and I had an answer less than 2 hours later
Title: Re: Witholding 28% tax on fotolia income
Post by: total on December 09, 2016, 06:17: ok, thanks, i will try
Title: Re: Witholding 28% tax on fotolia income
Post by: PigsInSpace on December 09, 2016, 21:53: I asked them once before about getting back tax money that was incurred before I submitted my paperwork. They said no.
Title: Re: Witholding 28% tax on fotolia income
Post by: total on December 12, 2016, 06:49: money is lost, nothing can be done.
"fortunately" my income from fotolia is not that large :)
Title: Re: Witholding 28% tax on fotolia income
Post by: unnonimus on January 02, 2017, 19:14: fotolia pays you in credits, not in cash. they report the credits on your 1099 misc.

legally, if they report income on your 1099 that was paid to you in credits, fotolia has to pay cash to the IRS because the IRS does not accept fotolia credits.
Title: Re: Witholding 28% tax on fotolia income
Post by: dpimborough on January 04, 2017, 07:22: Quote from: unnonimus on January 02, 2017, 19:14
fotolia pays you in credits, not in cash. they report the credits on your 1099 misc.

legally, if they report income on your 1099 that was paid to you in credits, fotolia has to pay cash to the IRS because the IRS does not accept fotolia credits.

Sorry what has that to do with the OP's post? ???
Title: Re: Witholding 28% tax on fotolia income
Post by: dpimborough on January 04, 2017, 07:24: Quote from: total on December 12, 2016, 06:49
money is lost, nothing can be done.
"fortunately" my income from fotolia is not that large :)

Actually you can try and reclaim the with holding tax back from the IRS

https://www.irs.gov/uac/tax-refund-withholdings-and-offsets (https://www.irs.gov/uac/tax-refund-withholdings-and-offsets)
Title: Re: Witholding 28% tax on fotolia income
Post by: hansenn on January 04, 2017, 09:09: I was asked to fill in a new tax form last monday. Instantly accepted
Title: Re: Witholding 28% tax on fotolia income
Post by: SpaceStockFootage on January 04, 2017, 09:25: Quote from: unnonimus on January 02, 2017, 19:14
they report the credits on your 1099 misc.

I'd be very surprised. Any company reporting credits, brownie points, tokens, scrip, experience points or manna on people's 1099's (instead of actual US currency amounts) are likely to have some very unimpressed IRS investigators turn up on the doorstep, asking "are you taking the p**s?!"
Title: Re: Witholding 28% tax on fotolia income
Post by: click_click on January 04, 2017, 12:56: Quote from: total on December 12, 2016, 06:49
money is lost, nothing can be done.
"fortunately" my income from fotolia is not that large :)
Technically we're talking about Adobe now right? In any case, I experienced something similar with Zazzle and it took a couple months to sort out the mess during which Zazzle kept the 30% withholding tax (I'm also EU).

After the whole thing was sorted and the fact that Germany is a 0% withholding country, I received the past months tax withholding which Zazzle originally deducted.

Since my tax status hasn't changed during that time, Zazzle transferred the withheld tax amounts with the following payout. So I never really missed out on the 0% tax withholding.

The money that Fotolia kept in your case was intended to go to the IRS (if I understand correctly), but that should only happen if you wouldn't provide your ITIN. Since you did that Fotolia can keep those funds and get a coffee for that (no idea how much they kept). But I'm sure it is not their money after all...