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Upwork Income to report to taxes. HELP!

Active Member
Pauline T Member Since: Jan 9, 2019
1 of 8

I am filling out my taxes with TurboTax and I was not sure which income should I report for Upwork. Should I report ONLY the money I actually made (money I received on my bank account) or should I report the money I receive on my bank account PLUS the Upwork fee I paid on all my contracts?

 

Thank you!

Community Guru
Preston H Member Since: Nov 24, 2014
2 of 8

The Upwork fees you paid are an expense. In no way are they part of your net income from Upwork.

 

If you had a $100 contract, and you received $80 from Upwork, that means you had a net income from that contract of $80.00.

 

Not $100.00.

 

Exactly how this is reported depends on how you are filing taxes. Some people itemize expenses, reporting a full $100 and then separately reporting $20 as an expense. Some people report only the final $80 net earnings. But you definitely don't want to ignore the fees/expenses. You're expected to take that into account when you report income.

Active Member
Pauline T Member Since: Jan 9, 2019
3 of 8

Thanks for your quick replu Preseton! 

 

So basically, if I made $100, I would only report the $80 in my total income with Upwork. I just completly disregard the $20 I paid to Upwork, is this correct? 

Community Guru
Preston H Member Since: Nov 24, 2014
4 of 8

I'm not a tax professional and can't tell you how precisely how you should file. It really depends on which forms and which methodologies you are using.

 

But what you want the end result to be is that you report your income accurately. In the example we discussed, $100 is NOT accurate. Your income was $80.

 

As a practical matter, unless your income from Upwork reaches a certain threshhold in terms of dollars AND number of transactions, then it is not reported directly to the IRS. So if you report $80 in income directly to the IRS, they have no records to contradict that, and they'll be appreciative of you reporting that income.

 

After the thresshold is met, then numbers are reported directly to the IRS, and at that point, more involved IRS reporting forms and techniques may be advisable.

 

Read more here:

https://support.upwork.com/hc/en-us/articles/211067918-Tax-Requirements

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Active Member
Pauline T Member Since: Jan 9, 2019
5 of 8

Thanks so much Preston!

Community Guru
Douglas Michael M Member Since: May 22, 2015
6 of 8

@Pauline T wrote:

Thanks for your quick replu Preseton! 

 

So basically, if I made $100, I would only report the $80 in my total income with Upwork. I just completly disregard the $20 I paid to Upwork, is this correct? 


That is not what Preston said. You have options on how to report, best decided in consultation with a tax professional or accountant. Personally, I cannot fathom how a small business owner would not want to report business revenue (billings received) minus expenses, including not only Upwork fees but any other expenses required to run one's business.

 

Best,

Michael 

Community Guru
Scott B Member Since: Nov 20, 2015
BEST ANSWER
7 of 8

I am also not a tax professional; however, I'll tell you what I do which is reviewed by a tax professional.

 

If I had grossed $100 and paid $20 to UW, my net income is $80. Yes, that does mean you will pay tax on the $80 not the $100. However, both should be reported. $100 will be revenue and $20 will be in expenses. Where this gets recorded does depend on the forms you are using. I use a Schedule C as this is all reported under my LLC. Your needs may be different but the notion of recording both amounts should be the same.

Active Member
Pauline T Member Since: Jan 9, 2019
8 of 8

Thanks so much Scott. This is very helpful! 

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