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cmorrisodesk
Community Member

How exactly does UpWork calculate figures on its 1099-K?

According to IRS regulations, I owe tax on earnings that qualify under its constructive receipt rule. At UpWork, it takes several days for a payment to become available for withdrawal (and then maybe more for my auto-withdrawal to move it to my bank account). These funds don't seem to qualify under the IRS's constructive receipt rule. So for example, if a payment is made on Dec 28 (or work is in progress, or is in review, or funds are pending) and then is available for withdrawal on Jan 3, it is only taxable in Janauary, under IRS guidelines. When exactly do earnings go on the 1099-K? I have four categories on my Reports - Overview page. The numbers on my 1099-K for Jan and Dec don't seem to match up with what I have for constructive receipt. I didn't receive a 1099-K for 2016, and I'm afraid there may be some overlap between Dec 2016 and Jan 2017. I don't want to pay tax twice on the same earnings. 

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lenaellis
Community Member

Earnings on your 1099-k are gross earnings that were available to you in that calendar year. If the job was completed in 2016 but the funds were not available until 2017, those earnings are reported on the 2017 1099-k report. If you have specific questions about amounts you can contact CS and they can go through the report with you.
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