Note:
Per IRS guidance, for tax year 2024, we are required to send you a Form 1099-K if you earn $5,000 USD or more in payments on Upwork. This minimum is a total of all your payments on Upwork, not per contract.
We know taxes can be difficult, especially figuring out which forms you need. While we can’t provide you with legal or tax advice, we can clarify which documents you will receive from us.
If you're a freelancer whom the Internal Revenue Service (IRS) defines as a “U.S. Person” and you earn money working through Upwork, you need to report this income on your tax return even if you do not get any forms from us.
For tax year 2024, we are required by the IRS to send you a Form 1099-K if you earn $5,000 USD or more in payments from your clients on Upwork in the calendar year during 2024, regardless of the number of transactions.
Note:
This article applies specifically to U.S. persons. If you are not a U.S. person, you will need to complete and submit Form W-8BEN or Form W-8BEN-E to Upwork, and you are also responsible for complying with the tax laws in your own jurisdiction. For questions about what taxes you owe, you may wish to consult with a trusted tax expert or advisor — Upwork cannot provide tax advice.
Form 1099-MISC and Form 1099-NEC
Non-employee compensation should be reported on Form 1099-NEC instead of Form 1099-MISC. Freelancers — including those who earned $5,000 USD or more — will not receive a Form 1099-NEC or 1099-MISC from Upwork. Your clients are not required to send you a 1099-NEC or 1099-MISC, either.
Form 1099-K
Form 1099-K is used to report payments made to U.S. taxpayers to the IRS. If we’re required to send a Form 1099-K to the IRS for you, you will also receive a copy, which may help you document your yearly income as you prepare your taxes or complete other business.
How we send your Form 1099-K and when you’ll receive it
You can receive Form 1099-K electronically or by mail. You can choose the delivery method when completing your Form W-9 or anytime under Tax Preferences > Notification Settings.
Electronic delivery lets you download it in Tax forms by January 31. Mailed copies will be postmarked by the same date. If you want your Form 1099-K mailed, please ensure that your address is current in your Tax information > Tax residence, and that it is a valid street address, not a P.O. Box.
If you’re a U.S. taxpayer and not receiving a 1099-K, the 1099-K section of your Tax forms will say, "There is no 1099-K for this year" by January 31.
Agency and freelancer accounts
If the name and TIN is the same, there will be one Form 1099-K issued for multiple accounts that belong to the same person, meaning that your freelancer and agency account amounts will be reported on one Form 1099-K.
Tip
The membership and service fees you pay to Upwork may be tax-deductible business expenses and refunds may not be considered “earnings” for tax purposes. Because the Form 1099-K is a record of payments only, what you report as income/earnings to the IRS may differ from the amount on this form.
- For total payments received, use the Transaction history report filtered by credits
- For total billings (including fees, but subtracting refunds), use the Billings and earnings report
Exception
Employees paid through Upwork Payroll
If you and your client agreed that you are an employee, you must be hired through Upwork Payroll. When you use the Upwork Payroll service, our staffing provider will be the employer, handle all of the withholding and payment of taxes, and provide a Form W-2 (not a 1099-K).
Learn more about U.S. taxes for income earned on Upwork from our tax partner, Keeper Tax.
Frequently Asked Questions
You won’t receive a Form 1099-K if you earned less than $5,000 USD from clients.
Also, if you withdrew your earnings through PayPal, you may not receive a Form 1099-K from us. Since PayPal issues Forms 1099-K for their qualifying customers, we avoid reporting your income twice. However, if you have at least $5,000 USD in earnings on Upwork that were not withdrawn through PayPal, we’ll send you a Form 1099-K. Any earnings distributed to you through PayPal will not be included on that form.
You’ll need to make sure that your tax address is up to date and that you have completed a Form W-9 with a valid Tax Identification Number (SSN, EIN, or ITIN). You can update this information in your Tax Information.
Ensuring we have the correct tax residence address and tax ID on file allows us to correctly file your 1099 forms as required by the IRS, as well as send it to your correct address this upcoming tax filing season. Be sure to use your valid street address, not a P.O. Box.
Plus, we are required to withhold taxes and submit them to the IRS at a pre-set tax rate if you do not provide us with a valid Tax Identification Number (SSN, EIN, or ITIN) on your W-9.
The U.S. Internal Revenue Service requires Upwork to report all gross payments to freelancers on Form 1099-K. We cannot deduct the fees that you pay from what we report. For example, say your client paid you $100 for a contract and you paid 10% ($10) in fees to Upwork. The full $100 counts toward the 1099-K total, not the $90 in earnings that you could withdraw. Please consult your tax advisor about what earnings and expenses you should claim on your taxes.
The U.S. Internal Revenue Service requires Upwork to report all gross payments to freelancers on Form 1099-K. We cannot deduct refunds that you pay to clients from the total that we report. For example, if your client paid you $5,000 USD, but you refunded $1,000 USD. We still have to report the total $5,000 USD total to the IRS, not just the $4,000 USD that you kept. Please consult your tax advisor about what earnings and expenses you should claim on your taxes.
We will keep your digital forms on file for a minimum of seven years.
Please consult a tax advisor to determine your responsibilities for freelancers who do work for your agency. If you pay your freelancers through Upwork by setting up sub-contracts for the work they do for your agency, you will not have to send a Form 1099-K since they will receive one from Upwork. However, if you pay them off the Upwork platform, you might be responsible for reporting their income.