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aaronkrish
Member

Filing Taxes

If we made just over $600 from projects, but the fees Upwork takes brings your amount to under $600, do we need to report it on our taxes, or does it go by the full amount before fees are taken? 

 

I've filed my taxes already, but now I'm second guessing everything. 

6 REPLIES 6

That's more a question for a tax professional, to be honest. Technically you did earn that $600 and the fees are an expense. But you really need to consult a professional for questions like this, because the IRS can be quite....severe.....if you do things the wrong way. And what the "right" way is, depends on your situation.

browersr
Member

It's $400 not $600 and it's gross (for reporting purposes) so that is before expenses. This is about self-employment tax (SS and Medicare) more than federal income tax. You will actually pay taxes though based on net (i.e. after expenses). So while you need to report you won't necessarily need to pay depending on your deductions. 

 

I am NOT a tax accountant (or any kind of accontant for that matter). 

mystudiomke
Member

Your income should only be what you received after Upwork fees. 

Lila


Lila G wrote:

Your income should only be what you received after Upwork fees. 


This has nothing to do with filing requirements. If you grossed $400 or more you need to file even if your expenses mean you made $0. 

And if you're self-employed, you need to pay estimated taxes every quarter on whatever portion of your income comes from said self-employment.

 

Basically, they should hire a tax accountant.


Michael S wrote:

And if you're self-employed, you need to pay estimated taxes every quarter on whatever portion of your income comes from said self-employment.

 

Basically, they should hire a tax accountant.


Only if you expect to pay $1k or more in taxes. Otherwise it isn't required.

 

Obviously we all recommend hiring a tax accountant, but anyone asking questions on a freelancer board should understand they are getting other freelancer's thoughts and experiences even if I still preface my points by indicating I am not a tax accountant. 

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