How do I list Upwork on schedule c for taxes

[tklegalasst]

I've hired freelancers from Upwork a few times, and I understand that Upwork provides the freelancer a 1099, so I don't have to, but how do I list what I pay to Upwork on schedule C?  Do I list it under "Business and Professional Services"? 

Thank you!

[bobafett999]

Yup

[tklegalasst]

Thank you!

[patchworksvideo · Accepted solution]

Talk to your tax professional to be sure of what specific option would apply in your specific situation, as some things may vary from one situation to another.

However, assuming that your Upwork hire isn't an "employee" (because, of course, you CAN hire employees on Upwork, using the Upwork Payroll service), then you're essentially paying an online marketplace for services. You'd list it in much the same way as any other services that you pay for.

And just for full completeness, if your Upwork hire should be classified as an employee, then you must deal with Upwork Payroll instead. This is on you to determine whether they're an employee or independent contractor within IRS definitions.