Author Topic: Tax question - cash in next year (Read 2964 times)

WebSubstance · « **on:** October 06, 2012, 19:41 »

Hi,
Not that I am pessimistic but I have I feeling that I am going to make more money in 2012 than 2013 (stock photos are a small portion of my income). So I was thinking to cash in my stock photos income in January 2013 for IS, DT and FT.
Does it make sense or the agencies will declare my income in 2012 anyways?
Thanks,
Michael

sgoodwin4813 · « **Reply #1 on:** October 06, 2012, 20:11 »

I think they will declare it in the year you take payout so that strategy should work.

lisafx · « **Reply #2 on:** October 07, 2012, 15:27 »

I'm not sure that's accurate. Every year I get a 1099 from them and it is the amount of money I have earned there during the year, not the amount I have requested to be paid out.

You can contact them to check, but I think it is based on what you earned there.

cardmaverick · « **Reply #3 on:** October 07, 2012, 16:31 »

Some agencies use accrual accounting methods, others cash - and it always creates headaches for me and my book keeping :s

Sean Locke Photography · « **Reply #4 on:** October 07, 2012, 16:34 »

I declare the amount that comes from IS to my account. Whatever they do doesn't affect me.

Ed · « **Reply #5 on:** October 07, 2012, 16:59 »

Depends on the agency.

If it's reported correctly, the income will be reported when you RECEIVE the money (iStock and Dreamstime do this correctly, per IRS instructions/regulations).

Fotolia screws their contributors by issuing a 1099 when you EARN the money which is incorrect. I had this discussion with Chad but he was too arrogant to listen to someone that's been doing taxes for 20 years and who knows better.

Ed · « **Reply #6 on:** October 07, 2012, 17:00 »

Quote from: cardmaverick on October 07, 2012, 16:31

Some agencies use accrual accounting methods, others cash - and it always creates headaches for me and my book keeping :s

It doesn't matter what the agency's method of accounting is...read the instructions to IRS form 1099 - it is to be reported on the cash basis of accounting.

WebSubstance · « **Reply #7 on:** October 07, 2012, 21:23 »

Thanks guys! I'll try not caching in until next year then.
Michael

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Author Topic: Tax question - cash in next year (Read 2964 times)

WebSubstance

sgoodwin4813

lisafx

cardmaverick

Sean Locke Photography

Ed

Ed

WebSubstance

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