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salesgirl1
Community Member

Need most up to date (2022) infotmation W-9 and 1099 MIsc, 1099 NEC and 1099-K

Can someone please provide me with the most up to date information (2022-2023) on why I have to have a w-9 on file with Upwork? 

If I am understanding the most current information provided on the Upwork platform .. A client will not be sending a freelancer any 1099 MISC/1099 NEC ? Is that correct? So why is the w-9 needed by Upwork? 

I am also seeing that I will be receiving a 1099-K (any income over 600) instead of a 1099 MIsc/1099-NEC from Upwork.   Is this the most up to date correct information?  Thank you

3 REPLIES 3
759e32fa
Moderator
Moderator

Hi Sarah,

 

Thank you for reaching out.  If you're a freelancer whom the Internal Revenue Service (IRS) defines as a “U.S. Person” and earn money working with your client through Upwork, you need to report this income on your tax return. However, most freelancers won't receive any tax forms from their contracts on Upwork.

 

To help you stay in compliance with tax laws, we ask you to complete required tax forms. If you are a U.S person, you should file a Form W-9 with Upwork (all others should file a Form W-8BEN). You sign electronically by submitting the form.

 

Non-employee compensation should be reported on a Form 1099-NEC instead of a Form 1099-MISC. Freelancers—including those who earned more than $600—will not receive a Form 1099-NEC or 1099-MISC from Upwork. Your clients are not required to send you a 1099-NEC or 1099-MISC, either.

 

Most freelancers won't receive any tax forms from their contracts on Upwork.

 

Qualifying freelancers will receive a form called the Form 1099-K (not to be confused with the more common 1099-MISC). 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. Remember that only those who have received over $20,000 in gross payments across more than 200 incoming transactions will receive a 1099-K. If you don’t meet the minimum payment threshold and/or transaction count, you will not receive any type of 1099 form.

 

To learn more, you may check this article.


~ AJ
Upwork


Annie Jane B wrote:

 

 

Non-employee compensation should be reported on a Form 1099-NEC instead of a Form 1099-MISC. Freelancers—including those who earned more than $600—will not receive a Form 1099-NEC or 1099-MISC from Upwork. 

Most freelancers won't receive any tax forms from their contracts on Upwork.

 

Qualifying freelancers will receive a form called the Form 1099-K (not to be confused with the more common 1099-MISC). 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. Remember that only those who have received over $20,000 in gross payments across more than 200 incoming transactions will receive a 1099-K. If you don’t meet the minimum payment threshold and/or transaction count, you will not receive any type of 1099 form.

 

To learn more, you may check this article.

 

The bolded information above is not accurate and contradicts both this IRS circular and the information at the top of the help article you provided as part of your response. 

wlyonsatl
Community Member

Sarah F.,

 

The income tax rules have changed for US-based freelancers for 2022 and beyond. Here are some details:

 

https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center

 

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