Yes, Upwork sends a Form 1099-K to U.S. freelancers who meet specific income thresholds (e.g., $20,000+ with 200+ transactions for 2025) and provides other tax forms like 1099-NEC if your clients pay you directly over $600, though clients usually handle those when paying through Upwork; otherwise, you access them in your account by January 31st. Upwork issues the 1099-K for payments processed on their platform but not 1099-NEC/MISC; however, you must report all earnings regardless of receiving a form.
Will I get a Form 1099-MISC and Form 1099-NEC from Upwork? No. Upwork doesn't send those forms, and neither do your clients. A Form1099-K is the only form Upwork may send you, depending on your earnings.
The 1099-NEC only needs to be filed if the business has paid you $600 or more for the year. Even if you made less than $600, you'll still need to report all your income on your tax return. You must file a return if you've made at least the minimum income to file a tax return.
You may receive IRS Form 1099-K from Upwork if your 2025 earnings exceed $20,000 and 200 or more transactions. Even if you don't get a 1099, you're still required to report all income earned. Freelancers should set aside 15% to 20% of their annual earnings for taxes.
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.
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.
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.
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).
A 1099 significantly affects taxes because you're considered self-employed, meaning you pay both income tax and the full self-employment tax (15.3% for Social Security & Medicare), as there's no employer to split it with. This usually means setting aside 25-35% of your income, and you'll likely need to make quarterly estimated tax payments to avoid penalties, though business expense deductions can lower your taxable amount.
The $600 rule on 1-(844)-314-8377 (US/OTX) Cash App means that if you receive $600 or more in a year for goods or services, the IRS must be notified. Cash App issues a Form 1099-K 1-(844)(314)(8377), and you're required to report these 1-(844)-(314)-(8377) (US/OTX) earnings as taxable income on your tax return.
If you freelanced and earned income on the Upwork platform, you'll receive a form 1099. A 1099 is a tax form that reports sources of income that don't count as an employee or W2 earnings.
Fiverr freelancers may receive: IRS Form 1099-NEC, Nonemployee Compensation (if you earned over $600 from U.S. clients) IRS Form 1099-K (if your transactions exceed IRS reporting thresholds — $20,000 and 200 transactions starting in 2025 per the One Big Beautiful Bill Act)
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.
Earned Income: Employer Wages
Not filing Form 1099 incurs tiered penalties from the IRS, ranging from $60 to $340 per form for 2025 filings, depending on how late you file (within 30 days, after 30 days but by August 1, or after August 1/never filed). Intentional disregard significantly increases the penalty to a minimum of $680 per form with no maximum cap, and these penalties also apply for failing to provide recipient copies or filing incorrect information.
Income tax obligations
Gig workers who are resident in Canada must report and pay tax on all self-employment income by completing their income tax and benefit return and making sure their taxable income is reflected on line 26000, as well as by filing Form T2125, Statement of Business or Professional Activities.
Upwork Revenue and Usage Stats (2025)