UpWork is a great way to connect with freelancers from around the world and get work done quickly and easily. However, you may be wondering if you can deduct the fees you pay to UpWork on your taxes.
The answer is yes!
You can deduct UpWork fees as a business expense on your taxes. This includes the UpWork service fee, which is a percentage of the total amount you pay to your freelancer, as well as any other transaction fees you may be charged.
To deduct UpWork fees on your taxes, you will need to itemize your deductions using Schedule C of Form 1040. This is the form used for reporting business income and expenses.
On Schedule C, you will list your business name (if you are a sole proprietor, this will be your own name), your UpWork user ID, and the amount you paid in UpWork fees for the year.
Keep in mind that you can only deduct business expenses that are considered “ordinary and necessary” for running your business. This means that you can’t deduct personal expenses, such as the cost of a computer or internet service that you use for both personal and business purposes.
If you have any questions about whether or not you can deduct a particular expense, it’s always best to speak with a tax professional. They will be able to give you specific advice based on your individual circumstances.
Conclusion: You can deduct UpWork fees on your taxes by itemizing them under business expenses on Schedule C of Form 1040. Be sure to keep track of all expenses throughout the year so that you can accurately report them come tax time. And as always, if you have any questions about whether or not an expense is deductible, it’s best to speak with a tax professional.