Inspiring

Answered

Double Taxation by PayPal

Forum|Forum|2 years ago
February 2, 2024
3 replies
2045 views

Ok. There's a situation now where Adobe stock contributors are being double taxed, because not only does Adobe stock issue a 1099 to Adobe stock contributors but now PayPal does the same thing. I want to know what the solution to this double taxation scenario is , how to handle it and how to avoid paying income tax twice on Adobe stock contributor earnings. Please only respond if you actually know the answer and the method for taking care of this dilemma.

Troubleshooting

This topic has been closed for replies.

Correct answer Nancy OShea

We're done Nancy. We're talking about reporting only NOT withholding. Ok? Please stop.

We're done Nancy. We're talking about reporting only NOT withholding. Ok? Please stop.
By @mars lewis

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OK.

[Discussion locked by moderator.]

M

moe hong

Inspiring

The form I got from Paypal was simply about their fees and interest, not about the principal. Did the amounts on the two forms you receive match?

M

mars lewisAuthor

Inspiring

Hey!! It's a tax form 1099 reporting income.

Nancy OShea

Community Expert

Are you certain it's an actual TAX and not a statement of PayPal's fees & interest? It goes without saying that you will receive many statements from banks, stock brokers and entities who paid you as it's required for income/tax reporting purposes.

Adobe can't give you financial or tax advice. Nor can fellow users. When in doubt, contact your accountant or tax expert.

Nancy O'Shea— Product User & Community Expert

M

mars lewisAuthor

Inspiring

They shouldn't be double reporting income through a third party.

M

mars lewisAuthor

Inspiring

The logical solution is for Adobe or PayPal to decide who's going to report the income - and do it only once.

and BTW I was really only interested to hear from other contributors experiencing the same scenario who actually make enough sales to trigger the issuance of a 1099 by PayPal. I wish others would kindly walk on by.

Abambo

Community Expert

What is clear?

Adobe generated revenue for you.
PayPal is like a bank. They did not generate revenue for you (well, except if they paid you additional money).

What should you do?

In all evidence, you will need to contest the tax form from PayPal, as it is wrong.

(source: https://turbotax.intuit.com/tax-tips/irs-tax-forms/what-is-an-irs-1099-form/L3NxSPMUe)

As this site is not a tax advisory site, it is strongly recommended to ask a tax advisor.

ABAMBO | Hard- and Software Engineer | Photographer

M

mars lewisAuthor

Inspiring

Not the practical solution I was looking for. Contesting a situation that is bound to be ubiquitous with even just this community adds an uncessary layer of complexity that neither myself, Adobe, PayPal or IRS will find satisfactory. There's bound to be a simpler solution.

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