As a freelancer, you have the freedom to work with clients from all over the world. However, this also means that you are responsible for your own taxes. If you earn income through UpWork, you will need to report this on your taxes.
The first step is to determine if you are an independent contractor or an employee of UpWork. If you are an employee, UpWork will withhold taxes from your earnings and send them to the government on your behalf. If you are an independent contractor, you are responsible for paying your own taxes.
If you are an independent contractor, you will need to file a 1099-MISC form with the IRS. This form is used to report miscellaneous income from sources such as freelance work.
You will need to include your Social Security number or taxpayer identification number on the form.
UpWork will provide you with a 1099-MISC form if you earned $600 or more from UpWork in a year. You can find this form in the “Taxes” section of your account. If you earned less than $600, UpWork is not required to send you a 1099-MISC form. However, you will still need to report your earnings on your taxes.
In addition to filing a 1099-MISC form, you may also need to pay self-employment tax. This tax is imposed on individuals who are self-employed or considered to be independent contractors. The current self-employment tax rate is 15.3%.
How Do I Report Earnings From UpWork?
If you’re an independent contractor who earns income through UpWork, then you’ll need to report this on your taxes using a 1099-MISC form. You can find this form in the “Taxes” section of your account if you’ve earned $600 or more from UpWork in a year.
In addition to filing a 1099-MISC form, you may also need to pay self-employment tax which is currently 15.