if i spend money on upwork without withdrawal is it still taxable?

[8f014829]

If i spend money on upwork on memberships or connects without withdrawal to my bank account or paypal is it still taxable?

[prestonhunter]

You would need to ask your local tax experts and authorities.

Upwork as a company is not going to answer your tax questions. They don't know your entire situation, nor do any Forum participants.

[martina_plaschka · Accepted solution]

I assume you mean income tax. I don't know your country, but I expect this to pretty much apply to all countries: only your net earnings, that is gross earnings minus the cost to achieve them (laptop, membership, ...) is taxable. 

I hope it is a hypothetical question, though, because if you don't achieve positive net earnings on upwork, your time is better spent doing something else. 

[wlyonsatl]

Under US federal tax law, you don't need to move money to a certain place (like a bank account) for it to be taxable. If you earn it and it's yours to do with as you please, including doing nothing at all with it, it's taxable in most circumstances.

[prestonhunter]

re: "If i spend money on upwork on memberships or connects without withdrawal to my bank account or paypal is it still taxable?"

The original question itself is peculiar. And this may simply be because the original poster was not being precise, or is not himself a tax expert.

But generally speaking, if we "SPEND money", then we do not ask if it is "taxable."

We ask if it is "deductable".

Also: Upwork freelancers can not "withdraw" money that they spend on Upwork membership or Upwork connects. So there may be some ambiguity about precisely what was meant.

[astepanov83]

I can only guess what country you're from. In Russia it depends on the mood of a tax inspector if he ever notices this. I think it's pretty much the same in Ukraine and Belarus. Don't bother with that. If you're a individual entrepeneur (you know what I mean), then pay for the membership from withdrawn money after taxes or your personal funds.