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Freelancer 1099

stephdesola
Active Member
Stephanie D Member Since: Feb 2, 2017
1 of 8

Hello.

 

The UpWork help center provides the following information:

  • Freelancers who are U.S. Persons and receive over $20,000 with more than 200 transactions through Upwork – You will receive a new form called the Form 1099-K. Under the Internal Revenue Code Section 6050W, Upwork will file a Form 1099-K form with the IRS for you, and you will receive a copy of your Form 1099-K via U.S. Postal Service by January 31 in order to accurately report your taxes.

I have made over $20k on UpWork but it is much few transactions than 200. Does this mean I will not receive a 1099?

jcullinan
Community Guru
Jess C Member Since: Feb 18, 2015
2 of 8

Nope, you won't. There's a slick little loophole in the US tax code for "third party agents" that Upwork fits themselves right into. You still have to report everything, but they don't.

tlsanders
Community Guru
Tiffany S Member Since: Jan 15, 2016
3 of 8

@Jess C wrote:

Nope, you won't. There's a slick little loophole in the US tax code for "third party agents" that Upwork fits themselves right into. You still have to report everything, but they don't.


 Actually, it's not a loophole at all, since third party agents like Upwork aren't actually paying anyone and without this added obligation the IRS has created to ensure more accurate reporting where a payee receives a lot of small payments from a large number of different payors, would not be required to issue 1099s at all. 

 

Without this added responsibility placed on platforms like Upwork, each client would be required to determine whether or not a 1099 was required for each freelancer each calendar year and issue those directly, regardless of how payment was made. The freelancer would still be legally required to report income, even for those clients who were not required to issue 1099s. 

 

Thus, what the IRS regulation does is shift a burden that historically lies with the client and freelancer to the third party platform--but only where non-trivial amounts are involved.

lysis10
Community Guru
Jennifer M Member Since: May 17, 2015
4 of 8

As I understand it, you need more than 200 transactions. You should have gotten an email telling you that they mailed them. I got mine already. If you didn't get an email then probably not. 

sqaanalyst
Active Member
Kshama S Member Since: Dec 7, 2015
5 of 8

Hello,

 

I have still not received 1099 form. I have had more than 200 transactions and my income is above $20,000. Whom can I contact for the same? 

 

Thanks.

mwiggenhorn
Community Guru
Mary W Member Since: Nov 10, 2014
6 of 8

Customer SErvice should be able to help or maybe a moderator will hop in with information for you...

katrinabeaver
Community Guru
Katrina B Member Since: Jan 9, 2011
7 of 8

@Kshama S wrote:

Hello,

 

I have still not received 1099 form. I have had more than 200 transactions and my income is above $20,000. Whom can I contact for the same? 

 

Thanks.


 I got mine a couple weeks ago. Have you changed addresses by any chance. If so I think you have to get a hold of the IRS to correct the address and have it resent. 

"Fairness is giving all people the treatment they earn and deserve. It doesn't mean treating everyone alike-Coach John Wooden"
vladag
Community Manager
Vladimir G Community Manager Member Since: Oct 31, 2014
8 of 8

Hi Kshama,

 

Please contact Customer Support and our team will assist you further.

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