UpWork is a platform that connects job seekers with businesses. The company charges fees to job seekers and businesses, and these fees can be a source of income for the business.
UpWork has been criticized for its high fees, but whether these fees are deductible is up for debate.
The IRS states that fees paid to a third-party to provide services are generally deductible. This means that, if a business pays UpWork a fee to post a job, the business can deduct that fee from its taxes.
However, the IRS also says that “the mere fact that a service is provided by a third party does not mean that the fee paid to the third party is deductible.” This means that the business must actually pay the UpWork fee in order for it to be deductible.
The question of whether UpWork fees are deductible is a complicated one. The company charges very high fees, and it is possible that these fees are too high for the business to deduct.
Additionally, the IRS has stated that fees paid to a third-party to provide services are not always deductible. This means that the business must have a legitimate reason for paying the UpWork fee in order for it to be deductible.
In the end, it is up to the business to decide whether it pays UpWork fees and whether those fees are deductible. If the business chooses to pay the fees, it is important to have a legitimate reason for doing so.