Microstock Photography Forum - General > Newbie Discussion
1099 Taxes based on payout or earnings?
JohnTravolski:
Let's say I earn $100 in December 2020 on Adobe Stock but don't receive the payout for this income until 2021. Does Adobe still report this as earned income on the 1099 for 2020, or does it only report what has been paid out to me in 2020?
I'm just wondering because, for audit purposes, I have been keeping track of all payments I have received from them, not platform-specific earnings. That won't do me much good if the 1099 reports the income based on when it is put into my account versus when I actually receive the payment since they wouldn't line up.
MatHayward:
--- Quote from: JohnTravolski on December 27, 2020, 01:51 ---Let's say I earn $100 in December 2020 on Adobe Stock but don't receive the payout for this income until 2021. Does Adobe still report this as earned income on the 1099 for 2020, or does it only report what has been paid out to me in 2020?
I'm just wondering because, for audit purposes, I have been keeping track of all payments I have received from them, not platform-specific earnings. That won't do me much good if the 1099 reports the income based on when it is put into my account versus when I actually receive the payment since they wouldn't line up.
--- End quote ---
Your 1099 from Adobe Stock is based on earnings in 2020, not payment requests.
-Mat
mj007:
Mat is this something new. I may be incorrect, as my wife says I am most of the time. I thought in past years I was only charged taxes on what I received payments for in that year. I thought money not collected that year was taxed deferred to next year or until I cashed it out ??
Sundry Photography:
Adobe has always sent 1099 based on earnings, not payments and it must have something to do with the fact that you decide when to request your payment (so you are able to control how much cash you report each year), compared with SS or IS where this is not under your control.
IRS permits cash accounting for small businesses / self employed.
https://www.e-file.com/help/cash-accounting.php
Sean Locke Photography:
I always do cash reporting, so it all evens out.
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