There are a lot of questions out there about whether or not UpWork reports your earnings to the IRS. The simple answer is: no, they do not report your earnings to the IRS.
The reason why UpWork does not report your earnings to the IRS is because they are not considered a traditional employer-employee relationship. UpWork is classified as a marketplace platform, which means that the freelancers who use their site are considered independent contractors.
This means that it is the responsibility of the freelancer to report their earnings to the IRS. UpWork does provide a 1099-K form for US-based freelancers who earn more than $20,000 and have completed more than 200 transactions in a calendar year. This form can be used to help file your taxes, but it is not required by the IRS.
While UpWork does not report your earnings to the IRS, they do keep detailed records of all transactions that take place on their site.
This includes information on who worked on what project, how much was paid, and when the work was completed. This information is available to both freelancers and clients through the UpWork interface.
UpWork does not report your earnings to the IRS because they are classified as a marketplace platform, which means that the freelancers who use their site are considered independent contractors. This means that it is the responsibility of the freelancer to report their earnings to the IRS.
