Reporting Upwork Income on Tax Form 1099

Introduction

As a freelancer on Upwork, it is your responsibility to report your earnings when filing your taxes. Any income earned through freelancing is considered taxable, and Upwork provides a Form 1099 for that purpose. Here is a simple step-by-step guide on how to do this:

Step 1: Gather Your 1099 Forms

If you’ve earned more than $600 from a client through Upwork, they should provide you with a 1099-NEC form. In other cases, you need to use your Upwork Earnings Summary to figure out your total income.

Step 2: Fill out Your Tax Return

Your reported earnings from Upwork will go on your Schedule C (Form 1040 or 1040-SR) as gross receipts or sales. If you’re required to pay Self-Employment tax, you’ll need to complete Schedule SE.

Step 3: Paying Your Taxes

If you owe taxes, you can pay them online, by phone, or by mail. You could also consider making estimated tax payments throughout the year to avoid a lump sum payment at tax time.

Useful Tips:

• Keep track of your income and expenses. This can help to decrease your taxable income and thus your tax bill.
• Consider deducting Upwork service fees. You can normally write these off as business expenses.
• If you’re making a substantial income from freelancing, consider consulting with a tax professional. They can provide advice tailored to your specific situation.

Remember, it’s important to comply with all tax laws and report your income accurately. If you’re uncertain or have any questions, always reach out to a tax professional.