Taxes

[#1]

Do I report my Upwork income as a Business when doing my taxes?

(If anyone out there has step by step advise for how to report Upwork income on H&R Block, I would truly appreciate it!)

Thanks.

[#2]

re: "Do I report my Upwork income as a Business when doing my taxes?"

Yes, that is one option.

That is not the only option.

Upwork as a company is not going to tell you how to do your taxes. Any Forum participant who tries to help is NOT familiar with your overall financial situation, employment situation, history, tax obligations, potential refunds, etc.

There is really not much we can do to help you. You would need to work with your local experts and authorities.

[#3]

Any free tax advice will be worth what you pay for it. Except this.

[#4]

As has been stated, you would be best to discuss with a tax professional. However, you'll likely need to report on Schedule C. Remember self-employed income does not have taxes withheld throughout the year as would happen with an employer. So you will owe your income tax plus self-employment tax. Depending on how much you earned and whether you have withheld quarterly (I am guessing you did not) this can be quite a shock. Again discuss your situation with a tax pro.

[#5]

Thank you. I will consult with a tax professional. Just to clarify: The
self-employment tax affects my Upwork income, not income at other jobs
(such as my Income as a Preschool teacher)?

[#6]

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Afton S wrote:
Thank you. I will consult with a tax professional. Just to clarify: The
self-employment tax affects my Upwork income, not income at other jobs
(such as my Income as a Preschool teacher)?

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Self-employment tax is really just Medicare and Social Security. When you are a W2 employee, the employer will pay half and you will pay half. However, the employer will deduct this automatically from your paycheck so you don't worry about. When you are self-employed, you are responsible for the ENTIRE payment meaning you pay both the "employers" portion as well as your portion. I do not know the status of your other jobs and whether you receive a W2. If you do, then your employer is deducting what is necessary (as explained above) and you would be responsible only for the income you earn from self-employment. If, however, your other income is not having withholdings made, then you are responsible. 

[#7]

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Afton S wrote:
Thank you. I will consult with a tax professional. Just to clarify: The
self-employment tax affects my Upwork income, not income at other jobs
(such as my Income as a Preschool teacher)?

---

Yes. Self-employment tax is basically you making up for the stuff an employer would have paid in a W-2 situation, such as Social Security, Medicare, and the employer share of payroll tax.