Non-US Person Needs File Upwork Income to IRS?

[3b8d8d91]

Hi there,

I'm an Canadian and making money on Upwork. I'm confused about how should the upwork income be determined? For me(Canadian resident), should it be considered an US source income?

I ask this because I want to know, should I file tax return for upwork income to IRS.

Thanks

Erin

[bobafett999]

I don't think you need to file in US, but Canada for sure.

[3b8d8d91]

Hi Prashant, thanks for the answer.

According to my study of the IRS taxation rules, the key question should be

Is the upwork income a US source income?

If it is, all freelancers working abroad of the United States should report their upwork income with 1040-NR form to IRS.

Please correct me if my understanding is wrong.

Thanks

Erin

[sofia2008]

You will need to fill a W8-BEN form. You will declare your earnings in Canada. Read below.

Non-U.S. Taxpayer Information Reporting Updat... - Upwork Community

[3b8d8d91]

Thanks Sophine, appreciated your answer.

Actually, I filed my W8-BEN form already, and I also red the the post you attached.

I think the post answered the question "is upwork a U.S-based company", and the answer is positive.

But it does not answer, "should I file my upwork income with IRS?"

And I think the purpose of W8-BEN are

- estalbish my foreign residency status(non-resident alien)

- prevent 30% withhold

W8-BEN does not determine whether I need to file income tax or not...

Am I right?

Thanks

Erin

[tlsanders · Accepted solution]

I believe you'll find the information you're looking for here: https://www.irs.gov/individuals/international-taxpayers/persons-employed-abroad-by-a-us-person

[3b8d8d91]

Cool, Tiffany, I think you got the key

---

Nonresident Aliens

As a general rule, wages earned by nonresident aliens for services performed outside of the United States for any employer are foreign source income and therefore are not subject to reporting and withholding of U.S. federal income tax.

---

[sofia2008]

You are right that the W8-BEN does not determine if you need to file income tax or not. The tax laws from Canada do determine you have to declare all your earnings.

[tlsanders]

Sure, but she was looking to know whether she needed to file with the IRS.