Yes, Upwork reports U.S. freelancer earnings to the IRS using Form 1099-K if earnings meet specific thresholds, typically $20,000 or more with over 200 transactions, though this can change based on IRS regulations. This form shows gross payments before fees or deductions. All income must be reported to the IRS, regardless of whether you receive this form.
It depends on how much you earn. For tax year 2025, if you're a U.S. person and earn $20,000 or more from your clients on Upwork (before fees) and have at least 200 transactions, you'll get a Form 1099-K from Upwork — regardless of how many transactions you had.
When you find a freelancer through Upwork, our Terms of Service require you to keep all work and payments on Upwork for the first two years. This helps protect both clients and freelancers and supports a trusted marketplace experience.
Other 1099 Forms (NEC or MISC)
Upwork does not issue IRS Form 1099-NEC, Nonemployee Compensation, or IRS Form 1099-MISC, Miscellaneous Information, to U.S. freelancers. However, if you run an agency or pay subcontractors through your business, you may need to issue those forms to others.
Important to know:
You may be liable for taxes in your country even when we are not required to collect them on Upwork, so it's important that you stay informed about your local tax laws and requirements. Consult with your local tax authority or tax advisor about any questions you have.
Independent contractors must report all income as taxable, even if it is less than $600." If you fail to report your income, it can result in hefty penalties. You should even report cash income.
The IRS may charge penalties and interest beginning from the date they think you owe the tax. There are times when leaving a 1099 off of your tax return doesn't change it. And sometimes including a missing 1099 can actually reduce the tax that you owe.
Upwork Inc. Common Stock is estimated to report earnings on 02/11/2026. The upcoming earnings date is derived from an algorithm based on a company's historical reporting dates. Our vendor, Zacks Investment Research, might revise this date in the future, once the company announces the actual earnings date.
Yes, if you have net earnings of $400 or more from self-employment, you must file a federal tax return to pay self-employment tax (Social Security and Medicare), even if your total income is less than $5,000. You'd file a return (Form 1040) to report this income and pay the tax via Schedule SE and likely estimated quarterly taxes, but you still need to file if your other income (like W-2 wages) meets other standard IRS filing thresholds (e.g., $14,600 for single filers in 2025).
While Upwork helps me earn money from clients, Medium and WordPress help me build a brand and grow my confidence as a writer. So, is Upwork worth it in 2025? Yes ,but only if you're prepared for the grind. It takes effort, patience, and a little investment.
I made over $10,000 in just 30 days on Upwork — and no, it didn't happen overnight. It took effort, patience, and some smart moves. If you're looking to make money online as a freelancer, I hope my story helps you. Instead of doing many things, I focused on one thing: writing for tech companies.
If you've earned more than $400 in net self-employment income — even if it's just from a side hustle — you must file taxes. With most freelance income, you report it on Form 1040 Schedule C, as part of your personal tax return.
Posts that aren't genuine work you intend to hire for on Upwork. Hacking a website, person, company, or anything else. Harmful or dangerous jobs. Offering or requesting work that could be harmful to another person or entity or that could pose a danger to the person performing the task.
Cons of using Upwork
Upwork Revenue and Usage Stats (2025)
No, the IRS doesn't catch every instance of unreported income, but their advanced data-matching systems catch most discrepancies involving third-party reporting (like W-2s, 1099s for freelance/interest/dividends) through automated checks, leading to CP2000 notices and potential penalties if missed; however, cash income, crypto, or lifestyle mismatches can also trigger scrutiny, though it's less certain than reported income, and high-income non-filers are a current focus.
The biggest tax mistakes people make include filing late, math errors, incorrect personal info (like Social Security numbers), forgetting deductions/credits (like EITC), misreporting income, not signing forms, and making errors with bank details for direct deposit, all leading to delays, penalties, or missed savings, with using tax software or professionals helping avoid these common pitfalls.
However, you can reduce the chance of audit significantly by paying careful attention to detail and recognizing whether you are reporting a transaction of special interest to the IRS. And if you do get audited, having accurate and complete records and professional advice can make the process go more smoothly.