If you are a U.S. person earning money through Upwork, you must report this income on your tax return even if you do not receive forms from us. Some freelancers will receive a 1099-K form, which is used to report payments made to U.S. taxpayers to the Internal Revenue Service (IRS).

Form W-9

Form W-9 is a U.S. tax form for U.S. persons. Upwork and the IRS use this form to determine what taxes, if any, we need to collect from your earnings on Upwork. Without this form as proof that you are a U.S. person, Upwork is required to withhold and remit taxes from your payments to the IRS at a pre-set tax rate. You must have Form W-9 on file before you can withdraw earnings from Upwork.

Please note that this information is for general guidance only, and for specific tax advice, consult your local tax authority or a tax advisor.

Frequently asked questions

Why is my income that I withdrew using PayPal not showing on my Form 1099-K from Upwork?

Since PayPal is also distributing Form 1099-K to their qualifying customers, we did not want to report your income twice. You will still receive a Form 1099-K from us if you are eligible  for one, but the amount that was distributed to you through PayPal will not be included.

How do I make sure that I receive my Form 1099-K from Upwork?

You’ll need to make sure that your tax address is current and that you completed a W-9 form with a valid tax identification number (TIN). You can update this information by going to  Settings and then selecting  Tax Information .

Why is it important that I ensure my tax information is updated?

We're able to correctly file your 1099-K form, as required by the IRS, when we have your updated tax residence address and tax ID on file. We're also able to send forms to your correct address this upcoming tax filing season. Plus, if you do not provide us with a valid TIN on your W-9 form, we are required to withhold taxes and submit them to the IRS at a pre-set tax rate.

How will you distribute my Form 1099-K, and when will I receive it?

We mail your 1099-K form by January 31 each year for the previous year’s payments.

Does this mean I have to report my income to the IRS even if I only make a small amount on Upwork?

All income that you make on Upwork may be taxable and should be reported. Consult your local tax authority or a tax advisor about what earnings and expenses you should claim on your taxes.

Why is the amount that Upwork deducted from my earnings for service fees included in what you reported on Form 1099-K?

The IRS requires Upwork to report all gross payments to freelancers on Form 1099-K. We cannot deduct the fees that you pay from the total that we report. Consult your local tax authority or a tax advisor about what earnings and expenses you should claim on your taxes.

Why are payments that I refunded to a client showing on my Form 1099-K?

The IRS requires Upwork to report all gross payments to freelancers on Form 1099-K. We cannot deduct the refunds that you pay from the total that we report. Consult your local tax authority or a tax advisor about what earnings and expenses you should claim on your taxes.

What counts as a transaction on Form 1099-K?

Eligible transactions only include payments. Fees, taxes, withdrawals, and refunds do not count as eligible transactions. These payments are considered transactions:

• Hourly invoices

• Fixed-price invoices

• Bonuses

• Expense reimbursements

You can check the number of eligible transactions in a year  by heading to the  Reports section and then selecting  Transaction History.