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How Do Taxes Work on UpWork?

Last updated on September 30, 2022 @ 12:14 pm

As a freelancer, you are considered an independent contractor by the IRS. This means that you are responsible for your own taxes. When you complete a project on UpWork, you will receive an email notification from UpWork with the subject line “You’ve been paid”. This email will contain your total earnings for the project, as well as any UpWork fees that were deducted.

The amount of money you earned will be reported to the IRS on a 1099-K form. You can find this information in your Account Settings under the Taxes tab. UpWork will also provide you with a 1099-K form at the end of the year, which you can use to file your taxes.

As an independent contractor, you are responsible for paying your own taxes. This includes federal income tax, state income tax, and self-employment tax.

You can use UpWork’s Time Tracker to track the hours you work and calculate how much you need to set aside for taxes.

How Do Taxes Work on UpWork?

As a freelancer, you are considered an independent contractor by the IRS.

PRO TIP: If you are not careful, taxes can take a big chunk out of your earnings on Upwork. Make sure to set aside some money each month so you don’t get caught off guard come tax time.

The amount of money you earned will be reported to the IRS on a 1099-K form.

As an independent contractor, you are responsible for paying your own taxes. You can use UpWork’s Time Tracker to track the hours you work and calculate how much you need to set aside for taxes.

In conclusion, it is important to understand how taxes work on UpWork in order to correctly file your taxes and avoid any penalties. As an independent contractor, you are responsible for paying your own taxes which includes federal income tax, state income tax, and self-employment tax. You can use UpWork’s Time Tracker to help calculate how much you need to set aside for taxes each month.

Drew Clemente

Drew Clemente

Devops & Sysadmin engineer. I basically build infrastructure online.