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Paying Taxes on My adobe stock content

Community Beginner ,
Jan 27, 2019 Jan 27, 2019

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I'm trying to find out if I HAVE to pa taxes on the few images that were sold on Adobe Stock or not.  I haven't even received the money because I'm still under the $50 benchmark to be able to retrieve it from Adobe. I received a 1099 form from fotilia and don't know if I can ignore it because I haven't actually received any money from Adobe yet OR if I have to pay taxes on money i have not actually received yet lol. 

Thank for answer my stupid question in advance.

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Adobe Community Professional ,
Jan 27, 2019 Jan 27, 2019

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The benchmark is now 25€, and yes, you need to pay taxes. The only question is when... As you probably do not a great accounting, as most of us, you will not declare accounts recievable as revenue but declare the revenue when it is due for payout.

In any case, however, please note that nobody here does tax advises so this is my own unqualified thought. For all cases ask your tax advisor.

ABAMBO | Hard- and Software Engineer | Photographer

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Community Beginner ,
Jan 28, 2019 Jan 28, 2019

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I'm not looking for tax advice I'm looking for how your business works with these pieces. I wanted to simply understand if since I cannot pull the money out yet since I have under $25 is that money really considered "mine" since I can't actually get it? Someone on your team should have the knowledge about this because i guarantee my accountant will have questions on that slippery detail.

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Adobe Community Professional ,
Jan 28, 2019 Jan 28, 2019

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Sorry about the confusion, but my team is consisted of me alone. I'm a user as you. Adobe won't give your advice on this topic.

I do consider revenues when revenues arrive on my account. I think you should do the same.

ABAMBO | Hard- and Software Engineer | Photographer

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Community Beginner ,
Jan 28, 2019 Jan 28, 2019

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Oh sorry I thought you worked for them. my bad. thank for your help on this.. I can't imagine we have to pay taxes on money we have not actually received. but ill see what else i can find out if i find anything Ill post on here

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Adobe Community Professional ,
Jan 28, 2019 Jan 28, 2019

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CoryHarrill  wrote

I'm not looking for tax advice I'm looking for how your business works with these pieces. I wanted to simply understand if since I cannot pull the money out yet since I have under $25 is that money really considered "mine" since I can't actually get it? 

Yes, the money is yours because it is in your account - even though there is a minimum payout ($25 USD now). So, you may not have reached this threshold, but it is still income paid to you, therefore taxable income.

So, it is your responsibility regarding taxes on how it should be done in your country of tax residence.

Each country has their own tax laws, so you as a contributor need to be aware of how it works in your country of residence.

Be aware that this is an international forum, so tax laws are different from country to country.

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Community Beginner ,
Jan 28, 2019 Jan 28, 2019

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So let me restate what I think I am hearing you say. Adobe considers the money to be mine once it is deposited into my account, whether or not I have it in my possession, and as such it is considered my taxable income as soon as it is deposited into my contributor account.

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Community Beginner ,
Jan 28, 2019 Jan 28, 2019

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I am in the same boat of thought too.. We need to find an Adobe representative to get us an answer cause that just seems absurd.

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Community Beginner ,
Jan 28, 2019 Jan 28, 2019

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That just doesn't seem like good business practice. I am paying taxes on money I don't even have in my bank account yet? doesn't seem correct. Unless you have some direct statement from adobe or tax law that can change my mind.. I can't seem to find any assistance from adobe or anything in there online info about it.. I could very well be searching wrong terms since I am not well versed in it.

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Adobe Community Professional ,
Jan 29, 2019 Jan 29, 2019

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CoryHarrill  wrote

That just doesn't seem like good business practice. I am paying taxes on money I don't even have in my bank account yet? doesn't seem correct. Unless you have some direct statement from adobe or tax law that can change my mind.. I can't seem to find any assistance from adobe or anything in there online info about it.. I could very well be searching wrong terms since I am not well versed in it.

Your taxing situation is dependant on your local laws not on Adobe. Therefore you need to consult your local tax advisor. Anything that ricky336​, jacquelingphoto2017​, I myself and EvilBugQueen1​​, MatHayward​, both from Adobe, can say are general assumptions based on their ​current situation.

Tax laws are quite complicated and the situation is very different from country to country and based on your personal situation. But keep in mind that when you pay taxes you can also declare your costs (depreciation) and when your revenue for doing business is around 25$, your costs are higher than your revenue. So you could well be in a situation where you pay less taxes because of doing business.

And a second thought: either you pay taxes now or later but you pay taxes. So where is the problem?

ABAMBO | Hard- and Software Engineer | Photographer

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Community Beginner ,
Jan 29, 2019 Jan 29, 2019

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I'm with Abambo on this one: 2018, 2019, whatever. Eventually you will pay it. I mainly wanted to understand how they do things around here, although in my case I did fill out the tax paperwork but they took out the withholding anyway. Which I don't care all that much about but again I only want to understand why that would happen. What kind of tax could you possibly owe on $24? It doesn't seem worth the angst to get upset over this.

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Community Beginner ,
Jan 29, 2019 Jan 29, 2019

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im all for paying my dues on things but its money that hasn't hit my pocket yet.. IF it were in my pocket sure.. I'll pay the couple cents for it. but I'm not going to pay money on money I never received in my pocket. There excuse seems to be that I am able to close my account out at any time and collect that money whether it is under $25 threshold or not... But then I would be able to sell stock imagery anymore, and have to make a NEW account. seems dumb. hopefully my accountant and law friends will have some more insight on this. would hate to bring a class action suit against a company I've been dedicated to for my freelance work for years...

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Adobe Community Professional ,
Jan 29, 2019 Jan 29, 2019

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CoryHarrill  wrote

i would hate to bring a class action suit against a company I've been dedicated to for my freelance work for years...

This starts to get ridiculous. A class action (!!!) suit for 25$ ???

ABAMBO | Hard- and Software Engineer | Photographer

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Community Beginner ,
Jan 28, 2019 Jan 28, 2019

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I have the same question. I was sent a 1099 for income that I didn't receive because it is under the threshold. This makes no sense to me — this was not available to me as income in 2018 yet it has been reported to the IRS as 2018 income.  I certainly don't want it reported as income AGAIN in 2019. Plus I uploaded the proper paperwork indicating I don't need withholding yet they withheld tax money anyway. I'm afraid I don't have great confidence here and I have been unable to find anything online stating how the policy works. Can someone please post a link to Adobe income reporting policy so we can all be clear on how this is supposed to work? Thanks, Julie

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Community Beginner ,
Jan 28, 2019 Jan 28, 2019

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Yeah me too.. I'm not sure where to find that policy info and if I do find it I will definitely post it here.

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Adobe Employee ,
Jan 28, 2019 Jan 28, 2019

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Hi C. H.,

Earnings count when the sale happened, not when you cash it out. This isn't a recent change. As I understand it's been this way for a while.

EBQ

EBQ

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Adobe Community Professional ,
Jan 28, 2019 Jan 28, 2019

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Hi CoryHarrill

juliar2563253

I'm not sure I'm following this conversation correctly, but this is what I know. When you register to start contributing you are given the option to complete one of 2 tax forms depending on the country you're in in respect to a treaty. In my case the balance or amount that is available to me is the net after the relevant tax as stipulated on the form completed for validation is taken out.

On your contributor page click on "Contributor Account" , scroll to the bottom to "Tax Information".

I'm not sure if you did find Account and submission guidelines at Adobe Stock and read it through. The link "Payment and Taxes" has some information you can benefit from. Depending on the country you're in will determine the info that is relevant.

Anything further MatHayward​ would be in a better position to assist.

Regards

JG

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Community Beginner ,
Jan 29, 2019 Jan 29, 2019

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Thank you this is the most insightful info, and going through the links I found which were not quiet where you send they were I found that there is an email address for anyone else who has issues with understanding this adobetax@adobe.com I will be emailing them in hopes to find out more insight on this. I have sent up with Adobe a w-9 and the information I am finding states I don't need to file anything under $600 of what I have earned. Now here is where i don't think its fair is you are all stating the right fact. I don't think its fair that contributors have to pay on money they have not actually received. I am below the threshold of pull out money into my own account meaning Adobe STILL has that money. it is not in my wallet. If it were in my wallet I wouldn't have brought this up but the fact that it seems like Adobe wants me to pay taxes on money they are hold is a bit BS...

Since the Adobe people could post the link here for the rest of us whoa re confused by this here is a link to the FAQ pagge which doesnt really help with anything. but might make you feel like there is some care about being transparent.

Tax FAQs for Adobe Stock Contributors

I'm feeling like I've been duped by a company I have supported for many years with promoting and using their products...

This question pop up in the FAQ:

Why I am receiving a 1099 if I didn't request or receive a payment?

Adobe Stock's system is set up so that you receive a 1099 based on the royalties earned each year.

This is done for several reasons:

  • This prevents contributors from “hoarding” royalties and only cashing them out when they feel like paying taxes on them.
  • Earning royalties constitutes "constructive receipt" based on IRS rules.
  • Even though contributors cannot cash out until they have at least $50, they can technically close their account and receive their royalties.

Please note: royalties are taxed the year you earn them, they are not taxed again when you remove the funds.

I can close out my account and get my royalties to what? reopen a new one.. WTH kind of answer is that!!? I haven't even hit the New $25 benchmark yet on sales and I have to pay taxes on that money that I can't even get UNLESS is close my account out? That's moronic.... YOU Have my money Adobe YOU PAY THE TAXES ON THE MONEY YOU ARE HOLDING ON TO!!

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Adobe Community Professional ,
Jan 29, 2019 Jan 29, 2019

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CoryHarrill said,

"I will be emailing them in hopes to find out more insight on this. "

CoryHarrill​ when you do get a response, can you please post it on this thread for our benefit?

Regards

JG

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Community Beginner ,
Jan 29, 2019 Jan 29, 2019

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will do and if you hear anything post it here s well. I'm sensing from the bit i am learning is that this is a skeezy business model that is not beneficial at all to their contributors. I could be wrong but my facts I am coming up on are not telling me that.

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Adobe Community Professional ,
Jan 29, 2019 Jan 29, 2019

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CoryHarrill  wrote

YOU Have my money Adobe YOU PAY THE TAXES ON THE MONEY YOU ARE HOLDING ON TO!!

Hey, payout threshold is 25$. I do not know what you are paying for taxes but for less than 25$ and depreciating what you have as camera/computer gear will give you an effective gain... 🙂

ABAMBO | Hard- and Software Engineer | Photographer

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Community Beginner ,
Jan 29, 2019 Jan 29, 2019

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Abambo, I'm not attacking you personally on this. I see that this conversation probably isn't going to go anywhere. I just want to state facts from the point of view of a contributor who has not hit threshold level and someone who would like to make it fair as possible to us as contributors.

its the point in fact that i am paying tax money on money i haven't actually received, sure .. you are right that with the expenses of things I have probably will put me at a level where i don't have to pay anything. BUT its the business practice that i have an issue with. I nor anyone else should have to pay taxes on ANY amount of money that a company is withholding until it is provided to their bank account.

And, as an example, if Adobe has 10000 contributors all having to pay taxes for $24 dollars they have not received in their bank accounts that added up to $240000 dollars of profit that contributors have not received a dime for AND are paying taxes on that profit that Adobe still has in THEIR bank!. That is something every contributor should think about.. class action suit isn't about me, its about the contributors to adobe. I would hope I am wrong in my thoughts on this but something just feels fishy.

Easy fix adobe would be to hand out the money each contributor has mad at the end of the year If they haven't already pulled it to their bank accounts.

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Adobe Community Professional ,
Jan 29, 2019 Jan 29, 2019

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You do not pay taxes to Adobe. You’re paying taxes to your government...

ABAMBO | Hard- and Software Engineer | Photographer

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Community Beginner ,
Jan 29, 2019 Jan 29, 2019

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I think we all understand we don't pay taxes to Adobe.

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New Here ,
Mar 30, 2019 Mar 30, 2019

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Anybody know HOW Adobe sends us a 1099 tax form reporting income for 2018? I can't find it online. Was one sent by US Postal Service?

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