🐈
» Forums » Freelancers » US Freelancers/Gig Workers and Tax Reporting
Page options
wlyonsatl
Community Member

US Freelancers/Gig Workers and Tax Reporting

I see this year Upwork will have to provide to the IRS a 1099-K for all freelancers who earn more than $600 from their Upwork projects during the year, regardless how many projects this involves. (The old 200 transactions limit no longer applies.)

 

I don't think this will affect non-US citizens or non-US residents directly, if the IRS considers work done by non-citizens while located outside the US as an export and not subject to US income tax, but other countries might want the same information once they find out the US government is getting it.

 

There are probably a fair few US freelancers who have been flying under the IRS's radar due to having less than $20,000 in annual fees or fewer than 200 transactions who will now find those earnings taxable at their marginal tax rate. And if those who are caught in the dragnet don't pay their estimated taxes during 2021 they will get some unpleasant communications from the IRS in 2022.

 

The tax (wo)man cometh.

1 REPLY 1
petra_r
Community Member


Will L wrote:

I see this year Upwork will have to provide to the IRS a 1099-K for all freelancers who earn more than $600 from their Upwork projects during the year, regardless how many projects this involves. (


It starts next year, so the reporting and 1099-K won't happen until early 2023.

Latest Articles
Featured Topics
Learning Paths