As a freelancer, you’re responsible for paying your own taxes. This includes any income you earn from UpWork. When it comes to reporting this income on your taxes, there are a few things you need to keep in mind.
First, you’ll need to make sure that you’re keeping good records of all the income you earn from UpWork. This means saving any invoices or other documentation that shows how much you’ve earned. This will make it easier to report your income when it comes time to file your taxes.
Second, you’ll need to know which tax form to use when reporting your UpWork income. The form you use will depend on whether you’re considered an independent contractor or an employee by UpWork.
If you’re considered an employee, you’ll need to use a W-2 form. If you’re considered an independent contractor, you’ll need to use a 1099-MISC form.
Finally, when it comes time to file your taxes, make sure to report your UpWork income on the correct line of the tax form. If you’re using a W-2 form, it will go on line 7. If you’re using a 1099-MISC form, it will go on line 21.
Reporting your UpWork income on your taxes is a simple process if you keep good records and know which tax forms to use. With just a little bit of preparation, you can make sure that everything is reported correctly and avoid any penalties or fines from the IRS.