How to Get a W2 from Upwork

Upwork, like other freelancing platforms, doesn’t issue the W2 forms because freelancers are considered as independent contractors, not employees. However, if you earn more than $600 in a year from a single client through the platform, the IRS requires that you receive a 1099 form, not W2. Here’s how you can manage your taxes on Upwork:

Acknowledge your Status as an Independent Contractor

Bear in mind that independent contractors are solely responsible for reporting their income and handling their taxes. Upwork does not withhold taxes from your earnings.

Understanding Form 1099

Form 1099 is used by the IRS to track income for independent contractors. If you earn over $20,000 or have more than 200 transactions from a single client in a year, you will receive a 1099-K form from Upwork. The platform sends the forms by January 31 of the year following the income earned.

How to Get 1099 Form

If you are eligible for the 1099 form, Upwork will send it to you by the required IRS timelines.

• Go to your Account Settings.
• Select Tax Information.
• Here you can view and save your 1099 form.

Tracking Your Earnings

If you do not meet the 1099-K requirements, you won’t receive this form but you are still responsible for reporting your earnings to the IRS. You can track your income via your Reports tab on your Upwork account.

Tax Deductions

As a freelancer, you may be eligible for tax deductions for business-related expenses. This includes equipment and supplies, home office expenses, and even certain travel costs.

Consult a Tax Advisor

When in doubt, consult with a tax advisor or a certified accountant who is familiar with the specifics of freelancing and can provide you with personalized advice.Always remember to report your incomes regardless of whether you receive a 1099 form. As a freelancer, it’s crucial to understand your tax responsibilities and to maintain accurate records of your income.