If you're based in the U.S. and earn money working on Upwork, you do need to report this income. And because of recent tax laws, most W-9 freelancers—including those who earned more than $600—will no longer receive a 1099-MISC from Upwork. Freelancers based outside the U.S. are not issued forms, and are instead asked to fill out a W-8BEN.
Either way, we recommend that you use your Earnings by Client report to accurately document your earnings.
One thing to remember—we’re not experts in your tax situation. Please consult your accountant before filing. For official information, please visit the IRS website.
Most freelancers will not receive IRS forms, although there are a few exceptions:
- Freelancers earning over $20,000 with more than 200 transactions – These folks will receive a new form called the 1099-K. Under the Internal Revenue Code (IRC) Section 6050W, Upwork will file a 1099-K form to the IRS for US-based freelancers earning over $20,000 USD and with over 200 separate transactions in a calendar year. They’ll receive a copy of their 1099-K via US Postal Service by January 31, in order to accurately report their taxes.
- W-2 employees – W-2 workers with employee status must be hired through Upwork Payroll. If you’re hired through the Upwork Payroll service, we handle all withholding and payment of taxes for you.
Please contact Customer Support with any questions or concerns regarding 1099 forms.