If you were a Boom Learning vendor, you will receive a 1099-MISC from Omega Labs Inc., doing business as Boom Learning, if we paid you $600 or more using a method other than Credit Card or Paypal. You are responsible for reporting income to the IRS whether or not you received a 1099-MISC.
With respect to its sellers, Boom Learning is a Third Party Payment Organization (TPSO) for the purposes of 1099 information returns. Sellers are issued 1099-K, not 1099-MISC. Learn more about 1099-MISC versus 1099-K here: https://blog.turbotax.intuit.com/self-employed/1099-misc-or-1099-k-whats-the-difference-29903/.
As a seller, you are responsible for reporting income even if you do not receive a 1099-K. You can find your income for any year, by going to Studio, Sales, and look under Payments. We sort your Payments by year and provide annual subtotals of your Earnings (after your service fee to Boom Learning), less any fee you paid to Paypal to receive your Earnings, and a Net Earnings number. You may need one or more of these numbers, depending on your state tax code.
Because Boom Learning uses PayPal to issue payments to sellers, 1099-K filings are a joint responsibility of Boom Learning and Paypal. In some cases, this might result in double reported income.
PayPal issued 1099-Ks
You will receive your 1099-K from Paypal if
- you are a Vermont or Massachusetts seller with payments of $600 or more;
- you have more than 200 total PayPal payments and more than $20,000 in gross PayPal proceeds;
Boom Learning issued 1099-Ks
You will receive your 1099-K from Boom Learning if you have more than 200 Boom Cards transactions and more than $20,000 in Boom Cards gross sales. If you meet this threshold, we will ask you to complete a W-9 and submit it to us. A sample form is attached to this FAQ.
Double Reporting of Income Problems and Solutions
There is a risk of double reporting of your income, when both of the following are true:
- your total transactions from all sales you provide through all marketplaces that are paid to you via PayPal exceeds 200 transactions and exceeds $20,000 and
- your total transactions from Boom Learning exceeds 200 and exceeds $20,000.
If both are true for you for any year, you may address the problem by
- using a form like the sample form attached to this FAQ to explain to the IRS your reconciliation of any double counting OR
- provide us a signed and dated statement containing the text below by Jan. 15 after the end of a taxable year asking us not to issue you a 1099-K for your Boom Learning transactions paid via PayPal.
"TO TAX & ACCOUNTING AT BOOM LEARNING,
I assert, under penalty of perjury, that I qualify to receive a 1099-K for the taxable year [INSERT the tax year just ended] from PayPal, because my total PayPal transactions exceed 200 and my total PayPal proceeds exceed $20,000. I instruct Boom Learning to omit all payments made to me through PayPal from any 1099-K, if any, issued to me by Boom Learning.
I understand that if my assertion is false and PayPal does not issue me a 1099-K, that my Boom Learning transactions might not be reported to the IRS on any 1099-K. Such false assertion may result in Boom Learning being subjected to penalties and fines. If such fines or penalties are assessed against Boom Learning, I agree that Boom Learning may recover those amounts by invoicing me, by withholding them from payment of amounts due to me, through small claims court in my home state, or pursuant to the dispute resolution terms of the Boom Learning Terms of Service, the methods of recovery to be decided solely by Boom Learning.
My taxpayer identification number is:
My business name is:
My full name is: