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Small Business (Sole Proprietor) - Deductions for Upwork

Active Member
Armand A Member Since: Oct 8, 2018
1 of 2

Hi there,


I have been searching high and low for advice for reporting Upwork payments as deductions.  My final step will be to upgrade on TurboTax for their advice, however, this is the last thing I need to report so I am attempting to avoid it.


Scenario: I used a few freelance app developers and designers to start and continue development on my small business project.  There are the actual milestone payments and Upwork fees associated with each. 


My question is, 1 how do you classify the actual payment to the freelancer as a deduction (or can you even do this), and 2 same with the fees associated?  These will actually continue into 2019, so whatever advice I can get here will help with the following year as well.  Also, I understand responses will be mostly responses through experience or opinions Smiley Happy



Community Guru
Jennifer M Member Since: May 17, 2015
2 of 2

I hired people for data entry type stuff and I put it under marketing.


I also have a section for web and hosting costs. I would probably put that kind of stuff in there.


For Upwork fees, I class it as marketing but this is coming from a freelancer.