The tax landscape is evolving, and it's important to stay informed. While there were projections of changes to the 1099-K reporting guidelines, the IRS has announced that the reporting threshold will remain at $20,000.This means that for 2023 and prior years, payment apps and online marketplaces are only required to send out Forms 1099-K to taxpayers who receive over $20,000 and have over 200 transactions. For tax year 2024, the IRS plans for a threshold of $5,000 to phase in reporting requirements.

What is Upwork?

Before delving into specifics, let's demystify Upwork taxes. Upwork is a platform connecting freelancers with clients worldwide. Any income you earn on Upwork is taxable, and the taxes you owe are commonly referred to as Upwork taxes.

Who pays Upwork taxes?

Not every Upwork user has to pay taxes. However, you will have to pay Upwork taxes if you're a U.S. resident or citizen and make over $400 on the platform.

How will I receive my 1099s from Upwork?

Upwork typically issues 1099-K forms to freelancers. These forms detail the total income you've earned through Upwork transactions and are essential for accurate tax reporting. You can generally find them on your Upwork profile.

What tax forms are needed to file Upwork taxes?

Filing taxes for your Upwork requires specific documentation. The main document is the 1099-K, which will be provided by Upwork. Additionally, freelancers may need to fill out forms like Schedule C and Schedule SE, depending on their circumstances.

How to save on Upwork taxes

• Business expenses deduction: You can deduct ordinary and necessary business expenses related to your Upwork activities, like equipment, software and your home office.
• Estimated quarterly taxes: If you're self-employed, paying estimated quarterly taxes helps you avoid IRS penalties and interest.
• Tax credits: You may be eligible for tax credits like the Earned Income Tax Credit (EITC) and the Child and Dependent Care Credit.

1099 write-offs you can claim on Upwork taxes

• Home office expenses: If your home office is your primary place of business, you can deduct a percentage of your utilities, maintenance and rent or mortgage.
• Business supplies: The cost of supplies necessary for your freelancing job on Upwork are tax-deductible.
• Software and tools: You can write off subscriptions, software and tools required to provide your services on Upwork.
• Marketing and advertising costs: You can deduct expenses related to promoting your freelancing services.

When do you file Upwork 1099 taxes

• April 15: This is the standard deadline for submitting Upwork 1099-K revenue on your federal income tax return.
• Quarterly estimated taxes: File estimated taxes on April 15, June 15, September 15 and January 15 of the following year if your tax liability is over $1,000.

How can FlyFin help you file your 1099s?

• Tax preparation: An expert CPA team will ensure accurate tax returns, including your Upwork 1099-K taxes, with full audit insurance.
• Tax planning: Techniques for accurate self-employment tax calculations and individual tax planning sessions to optimize your tax position.
• Unlimited guidance: Tax professionals that address all your tax-related questions and offer advice on maximizing credits and deductions.

What’s FlyFin?

FlyFin caters to the tax needs of freelancers, gig workers, independent contractors and sole proprietors. But anyone can file taxes through FlyFin! FlyFin tracks all your business expenses automatically using A.I. technology. Then, our CPA team files a guaranteed 100% accurate tax return for you – to save you a couple thousand dollars and a ton of time on your taxes. In addition, you can download the FlyFin app and have your taxes filed in less than fifteen minutes, saving time and money.