How to Use the End of Year Summary from Lumanu
Disclaimer** Lumanu does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal and accounting advisors for any related questions.
Lumanu provides technology and personal support that empowers you to focus more on doing what you love, creating authentic and compelling content!
As you gather your earnings documentation for the previous year, we’ve compiled an end of year summary that lists all payment transactions requested and paid through the Lumanu platform. Below you can find answers to FAQs for your “End of Year Earnings Summary Report” “EOY Summary” and other income tax reporting questions.
Why is Lumanu sending me an Earnings Summary and what is it?
Lumanu provides an earrings summary to all creators who requested and received the payment through the Lumanu platform for the previous calendar year. This summary only contains information for requests that were completed via Lumanu. This summary does not include information for requests that were paid outside of the Lumanu system or marked as paid from an offline source.
Does Lumanu provide a 1099-K?
Lumanu is a Third Party Settlement Organization (TPSO) and is only required to provide a 1099-K to individuals that were paid more than $20,000 in transactions for the previous calendar year. If you are below this threshold, you will not receive a 1099-K.
How do I use my EOY summary when I file my taxes?
The earning summary replaces a traditional 1099-K and is intended to provide an overview of the payment transactions paid through Lumanu in the previous calendar year. This summary will help you report your earnings for miscellaneous income to be filled out on your tax forms. Lumanu recommends you speak with a tax professional for all tax-related questions.
What about a 1099-MISC that I received in the past from brands?
Beginning in 2020 the 1099-MISC was replaced with a form called a 1099-NEC. The 1099-NEC is used to report Non-Employee Compensation and it is required anytime a company pays an individual or non-corporation greater than $600 in a calendar year unless the paying organization is a Third Party Settlement Organization (TPSO). As a TSPO, Lumanu does not issue the 1099-NEC forms.
Do I still need to collect tax forms from my brand partners or does Lumanu provide tax paperwork instead?
The only tax paperwork provided by Lumanu is a 1099-K for individuals who meet the federal requirements to receive one. We suggest contacting your brand partners for more information and tax documents.
Am I obligated to report income even if I do not receive a 1099-K?
Yes. If you earned less than $600 in a calendar year from your brand partner, the brand is not required to issue formal tax forms. However, you are still responsible for reporting all income to the IRS regardless of if you receive tax paperwork from your brand partners or not.
You are required to report all earnings to the IRS even if you do not receive a 1099-K form from Lumanu or your brand partners. A 1099K is NOT required to be able to file your taxes and report your income.
What should I do next with this information?
We recommend that you share your earnings summary with a tax professional.
For any questions related to your Lumanu account, please email us at email@example.com