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How to report Upwork earnings

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Lisa H Member Since: Apr 13, 2018
1 of 6

**have no idea what "location" dropdown category means**

 

I can't find a definitive answer anywhere on taxes.  Upwork no longer provides tax records.  They provide an earnings list, but nowhere does it say Upwork on it, it shows the client names.  There is also an earnings certificate but that doesn't help me for the IRS.

What business entity do we claim earnings from? Upwork, Websoft or each of the clients? 

 

I don't have any of the required detail for any of these entities to complete my taxes. Last year, the tax form for Upwork listed Upwork's name as "Websoft".  Do we claim the income as from company: Upwork or Upwork's prior year's name "Websoft" or from the individual client(s)?

 

How is income to be reported on taxes. (earned less than $20K) if we don't get any kind of tax document? What company name will the IRS check against?

Thanks!

 

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Prashant P Member Since: Sep 29, 2015
2 of 6

Well, I report as a Miscelleneous Income.  I have a separae bank account where all the money from Upwork and other business people goes.  And I have a spreadsheet with line item for my records.

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Virginia F Member Since: Feb 15, 2016
3 of 6

You're self-employed, you claim earnings from your clients collectively. All the info you need is under your "records" tab in several documents, including your transaction history.

 

I use Turbo Tax, and because I work from home I can take quite a few deductions.

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Lisa H Member Since: Apr 13, 2018
4 of 6

Hello, I ask this question every year as do seemingly many others and never can get an answer.

 

How does Upwork report earnings to the IRS?

 

Do they report the amount you've "earned" or actually received.  (i.e. fees).  And what fees are included?

 

Do they report under Upwork or Elance, Websoft, etc.

 

Why do they not provide any official documentation other than the "reports" which aren't official docs for the IRS and don't even have the name Upwork on them anywhere.

 

Hoping someone from Upwork will answer this.  They used to provide official tax record forms.

 

 

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Scott B Member Since: Nov 20, 2015
5 of 6

You will only get a form 1099-K from UW if you received over $20k AND you had more than 200 transactions through UW. 

 

UW process payments. Unless you meet the above criteria or have an employer using UW as a payroll provider, they are not providing a record of your earnings. It is up to you to properly file, which typically involves indicating your gross earnings and separately recording the UW fees which are deductions against your earnings. 

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Douglas Michael M Member Since: May 22, 2015
6 of 6

Lisa H wrote:

Hello, I ask this question every year as do seemingly many others and never can get an answer.

 

How does Upwork report earnings to the IRS?

They don't. That is your answer, which you have been given before.

As a small business, you are responsible for your own income and expense records and documentation. That is what you report to the IRS. Upwork offers you sufficient reporting on your gross revenue, Upwork fees, and net income to enable you to do this. The entity who received the revenue/income and paid the expenses is you (or whatever legal entity you have created to conduct business). Perhaps it would help to realize that neither Upwork nor your clients are your employers; there is no equivalent of the W-2, nor any other relevant IRS form until you reach the income and transaction-volume thresholds Scott mentioned.

 

You cannot expect Upwork to advise you on taxes, though they do annually host a workshop on how to do it. You may be able to find a recording.

 

You may find it helpful to hire a tax accountant, who can guide you through the process. Many freelancers use TurboTax.

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