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Microstock Photography Forum - General => Newbie Discussion => Topic started by: JohnTravolski on February 12, 2021, 01:47

Title: Tax Questions (Dreamstime and Dissolve)
Post by: JohnTravolski on February 12, 2021, 01:47
I have a few questions regarding taxes with Dreamstime and Dissolve.

I made some sales on Dreamstime in 2020 but never reached the payout threshold (only made $90). I have not received any tax form and don't see anything in my account. Will they only send you a 1099 if they actually pay out to you in a given year?

I made around $100 on Dissolve in 2020, which they paid out to me. Never got a tax form and I don't see one digitally. Emailed them but haven't heard back yet. Will they send me a 1099-MISC? Or do they only send one if I earn more than $600?
Title: Re: Tax Questions (Dreamstime and Dissolve)
Post by: cascoly on February 12, 2021, 16:52
you're correct that no 1099 is sent unless earnings are over $600

for earnings not paid out, it depends on your accounting method

if you're using the cash method, you report earnings when rec'd
Title: Re: Tax Questions (Dreamstime and Dissolve)
Post by: JohnTravolski on February 13, 2021, 20:20
The stock agencies have no idea which accounting method I use. That has nothing to do with whether or not they send a 1099.
Title: Re: Tax Questions (Dreamstime and Dissolve)
Post by: cascoly on February 14, 2021, 16:18
The stock agencies have no idea which accounting method I use. That has nothing to do with whether or not they send a 1099.

right 2 separate questions - whether an agency has to send a 1099 and how you report. 
Title: Re: Tax Questions (Dreamstime and Dissolve)
Post by: sgoodwin4813 on February 17, 2021, 20:36
My impression is that most agencies (except for Fotolia/Adobe) only report the money to the IRS when they pay you, so if you didn't get a payout from DT then you have no taxable income and they aren't required to send you a 1099.

In the case of DT I think they only provide the 1099 if they paid you more than $600 in a year, when it becomes required by the IRS, so you wouldn't have received one from them even if they did pay you (I never do).

I always report all the money I was paid regardless of whether the agency sends the correct tax form.  This excludes money that was earned but not paid out.  The exception is Fotolia/Adobe who will send you the tax form on what you earned even if you haven't received it in a payout, so that needs to be included.
Title: Re: Tax Questions (Dreamstime and Dissolve)
Post by: Sean Locke Photography on February 18, 2021, 08:17
Yep.  I just report all the income I receive in a given year.  I collect 1099s but I don’t particularly care about them.