Updated January 4, 2023
On December 23, the Internal Revenue Service (IRS) postponed new tax-reporting requirements for U.S. citizens for one year. This action delays a new law requiring e-commerce platforms such as Upwork to provide IRS information on users with more than $600 in revenue.
What this means for you: Given the delay, Upwork will continue to report form 1099-K if you are a U.S. person receiving at least $20,000 in payments from your clients on Upwork in 2022 that included 200 or more transactions.
Upwork vs. Paypal 1099-K: If customers withdrew their earnings from Upwork into Paypal, they will not see those earnings on their Upwork 1099-K; this is only for the 1099-Ks that went out for the 2022 tax year. Since Paypal now reports on these earnings, Upwork leaves them out of our 1099-K to avoid the appearance of double earnings. Customers can find these earnings in their Paypal 1099-K.
[Outdated] The Internal Revenue Service (IRS) requires Upwork to file a 1099 forms report for freelancers who earned $600 or more on Upwork during 2022. In addition to sending this form to the IRS early next year, we also send it to the address that freelancers have listed under Tax Information in their Upwork account.
We encourage freelancers to review and update their tax information as soon as possible here.
Ensuring we have the correct tax residence address and tax ID on file for all freelancers allows us to correctly file their 1099 forms as required by the IRS, as well as send the forms to the correct address this upcoming tax filing season.
If this information is out-of-date for freelancers, it will likely cause a delay in receiving their 1099 form in the mail, and may require us to withhold income tax from their future earnings to comply with IRS regulations. Freelancers need this form in order to file their tax returns in the upcoming tax season.
Learn more about W-9 forms here and reporting your Upwork income here.
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