Upwork 1099 Tax Form: Filing Requirements and Steps

🌟 KEY TAKEAWAYS

All Upwork freelancers who make more than $20,000 in projects per year (including Upwork fees, refunds, etc.), and have more than 200 transactions will receive the 1099-K Form by mail or email.

Some states have specific thresholds regarding the form, so it’s best to check the particular requirements for your state. 

Regardless of the reportable threshold amount, you should report all your income on your tax return.

An Upwork freelancer who receives at least $20,000  in client payments and has over 200 transactions in 2025 will receive a 1099-K form from Upwork by January 31, 2026. The rule applies to all U.S. taxpayers. If you’re new to Upwork and are still wondering how to pay taxes as an independent contractor working on this platform, this article is for you.

Given that filing taxes and knowing the accounting terms can be challenging, we're here to help. Although we can't provide legal or tax advice, we'll try to clarify the steps and requirements for receiving and filing the form.

Why is the Upwork 1099-K important?

The 1099-K form is used to report payments made to independent contractors in the U.S. to the IRS. With this form, companies like Upwork report the gross payments transacted between the client and contractor during a tax year, which is usually a calendar year. A 1099-K will be sent to the IRS only if you earned $20,000 or more and had over 200 transactions during the year.

As a freelancer working on Upwork, the platform doesn’t withhold any taxes from your income. You may be required to make quarterly estimated tax payments during the year to cover income and self-employment taxes. The responsibility for paying taxes falls solely on you as the independent contractor.

The 1099-K form includes all business expenses, such as shipping, sales taxes, card processing fees, canceled orders, and more.

According to tax laws in the U.S., a company like Upwork (an online marketplace) must file the 1099-K form with the IRS on your behalf if you earned more than $20,000 and had more than 200 transactions through their platform from January 1 to December 31 of a tax year. This threshold is the total gross amount for all your contracts and transactions. They are also required to send you a copy of your 1099-K form.

The 1099-K represents a record of all payments you receive in a calendar year and doesn’t only refer to the funds you withdraw.

Using accounting terms, the amounts reported on the form are your gross earnings rather than net earnings or net payments. They include the Upwork fees you pay, as well as refunds you issue to clients for Upwork payments.

Say that you receive a $25,000 payment from a client. Then you refund them the full amount ($5,000 or $25,000). Upwork will use the total income ($25,000) to report to the IRS.

Also, if one of your contracts is worth $100 and you have $10 (or 10%) in Upwork fees, the full $100 will be reported on your 1099-K.

Say that you receive a $25,000 payment from a client. Then, you refund them any amount ($5,000 or $25,000). Upwork will use the total income ($25,000) to report to the IRS.

Also, if one of your contracts is worth $100 and you have $10 (or 10%) in Upwork fees, the full $100 will be reported on your 1099-K.

You need to earn $20,000 or more AND have more than 200 transactions annually with Upwork to receive a 1099-K form. But even if you don’t receive this form, you still must report the income you earned on your federal income tax return

Current or former employees working for U.S. companies are familiar with W-2 forms. The 1099-K is similar, except it is issued to independent contractors and includes all transaction sales on Upwork.

This form is also important because it’s needed for filing state taxes. Different states have different sales thresholds. Also, some states need Upwork to report your earnings to them by sending them a copy of the 1099-K form.

Currently, ten states have a minimum payment threshold on the 1099-K:

The rules above only apply to U.S. residents. Foreigners working on Upwork have to submit a Form W-8BEN or W-8BEN-E on the platform. They should also comply with tax laws in their own countries or jurisdictions.

How to download a 1099-K form on Upwork

Upwork will mail or email you the 1099-K form if you qualify. You can also follow the easy steps below to get your transaction history:

Once you download your yearly income information, you’ll want to find out the total fees and refunds you paid.

You can find the information about your total in the “Billings and Earnings” report on Upwork.

All independent contractors can deduct the fees they pay to Upwork from their tax bill. These tax deductions are the reason why you should keep track of your business expenses.

Even if you work on Upwork part-time, you should still track your expenses that can be deducted from your taxes for your 1099 income. You can simplify expense tracking by using accounting software like FreshBooks. This easy-to-use software makes tracking all your business expenses easy, so you’ll be prepared once the tax season arrives.

The good news is that you can use some of the expenses for tax write-offs. Some tax deductions include:

If you have numerous sources of income, it’s always a good idea to hire a tax advisor. You can save money on taxes by working with those professionals. They are trained to look for all tax deductions and tax credits you can use. They are also knowledgeable about the tax laws and will save you time and stress.

In addition, accounting software for freelancers like FreshBooks makes tracking business expenses easier. It’s ideal for self-employed professionals, freelancers, or small business owners. Faster payments, easier invoicing, and accurate billing are among its key features.

Upwork 1099-K requirements

Some general requirements to receive the 1099-K include the following:

Before 2023, the law required Upwork to file a 1099-K form if you earned more than $20,000 and had more than 200 transactions. This meant that freelancers who earned $35,000 and had 150 transactions wouldn’t have received the 1099-K form. This rule is no longer valid, as the new 2023 law introduced the $600 threshold.

It’s important to note that the 1099-K is used to report payments and not earnings. Upwork needs to report all payments sent to freelancers, regardless of the fees or refunds paid.

All Upwork freelancers should make their estimated quarterly tax payments to the IRS. Check out our comprehensive guide for more information on estimated tax payments. Once the tax season approaches, it’s important to have made all of your estimated tax payments, so you can avoid paying a penalty.

The quarterly payments are due on the following dates:

Keeping track of your quarterly taxes is easy when using accounting software like FreshBooks.

How to get a 1099-K form from Upwork

All freelancers or independent contractors will receive their 1099-K form if they are eligible. If you earn more than $20,000 and have more than 200 transactions per year and haven’t received your form you can download a report from Upwork and report the income on your taxes.

You should also have a completed W-9 form on the platform. Make sure the tax address is updated and that you have a valid Tax Identification Number (EIN, SSN, or ITIN). Upwork can only send you a 1099-K form if you provided a correct tax ID and address. The IRS requires the files to be correct to avoid any misunderstandings.

Also, if you don’t provide the TIN on the W-9, Upwork will have to withhold taxes and submit them to the IRS at pre-set tax rates.

Most independent contractors receive their 1099-K by January 31 each year to cover the prior year's earnings. 

Upwork mails or emails the 1099-K forms to freelancers. That’s why you should keep your address up to date and valid. You can update your address in the “Settings” then “Tax Information” section on your Upwork profile.

FAQs about the 1099-K Upwork tax form

Does Upwork send a 1099 Form?

Yes, Upwork will send the 1099-K form to your mailing or email address if you’re eligible to receive one. You can expect to receive one by January 31 for the previous year.

Does Upwork send 1099-NEC?

Upwork doesn’t send 1099-NEC forms to freelancers. The clients of these freelancers also aren’t required to send them 1099-NEC or MISC forms. The only form Upwork will send you is 1099-K.

Can I write off Upwork fees?

Yes, it’s possible to deduct Upwork fees for tax write-offs. You can treat them as business expenses for tax purposes. Other tax-deductible payments include service fees, travel expenses, equipment expenses, and more.

Did you find this article helpful? If so, check out our article on How to File a 1099 form where we have explained in detail when and how to fill out the form.