Taxes for freelancers on Upwork and Fiverr

Freelancing through a marketplace changes some of the paperwork but not the tax. This guide explains what the platforms report, how to record your earnings and fees, and what freelancers living outside the US need to know.

By Mirza Fahad Baig, Chartered Accountant. Reviewed by Awais Jameel, Chartered Accountant. Checked against official sources on . 2 minute read.

Short answer

Upwork and Fiverr income is self-employment income. US freelancers report it on Schedule C and pay income tax and self-employment tax on the profit. Report the gross amount clients paid and deduct the platform's service fees as a business expense. The platform, not your clients, reports payments to the IRS, on Form 1099-K when the thresholds are met.

At a glance

Type of income
Self-employment income
Where it goes
Schedule C, with Schedule SE
Report
The gross amount clients paid
Platform fees
Deductible business expenses
Tax form from the platform
Form 1099-K when federal or state thresholds are met
Freelancers abroad
Usually give the platform a Form W-8BEN
Taxes for freelancers on Upwork and FiverrType of income: Self-employment income; Where it goes: Schedule C, with Schedule SE; Report: The gross amount clients paid; Platform fees: Deductible business expenses; Tax form from the platform: Form 1099-K when federal or state thresholds are met; Freelancers abroad: Usually give the platform a Form W-8BEN.KEY FACTS AT A GLANCETaxes for freelancers on Upwork and FiverrType of incomeSelf-employment incomeWhere it goesSchedule C, with ScheduleSEReportThe gross amount clientspaidPlatform feesDeductible businessexpensesTax form from the platformForm 1099-K when federalor state thresholds aremetFreelancers abroadUsually give the platforma Form W-8BENChecked against official sourcesTax BakersTaxes for freelancers on Upwork and FiverrType of income: Self-employment income; Where it goes: Schedule C, with Schedule SE; Report: The gross amount clients paid; Platform fees: Deductible business expenses; Tax form from the platform: Form 1099-K when federal or state thresholds are met; Freelancers abroad: Usually give the platform a Form W-8BEN.KEY FACTS AT A GLANCETaxes for freelancers on Upworkand FiverrType of incomeSelf-employment incomeWhere it goesSchedule C, with Schedule SEReportThe gross amount clients paidPlatform feesDeductible business expensesTax form from the platformForm 1099-K when federal or state thresholdsare metFreelancers abroadUsually give the platform a Form W-8BENChecked against official sourcesTax Bakers
Key facts at a glance, as set out in this guide.

How is marketplace freelance income taxed?

As self-employment income, like any other freelance work. You pay income tax on the profit and self-employment tax on 92.35% of it, and nothing is withheld. See how to file taxes as a freelancer.

Which tax form do you get?

Because clients pay through the platform, they do not issue you Forms 1099-NEC. Payments processed by a platform are reported by the platform on Form 1099-K when payments to you are over $20,000 and over 200 transactions in the year, or at lower amounts where a state requires it. Either way, all your income is taxable. See Form 1099-K.

Do you report gross or net earnings?

Report the gross amount clients paid as income, then deduct the platform's service fees as an expense. This keeps your return consistent with any Form 1099-K, which shows gross payments. Use the platform's annual earnings or transaction report to get both figures, and keep it with your records.

ItemWhere it goes on Schedule C
Total paid by clientsGross receipts, line 1
Refunds to clientsReturns and allowances, line 2
Platform service feesCommissions and fees, or other expenses
Connects, promoted listings, membershipsAdvertising or other expenses
Withdrawal and currency conversion feesBank or other expenses

What else can you deduct?

Equipment, software, internet, a home office used regularly and exclusively for work, and training that improves your current skills. See deductible business expenses and the home office deduction.

How do you pay the tax?

Through quarterly estimated payments, or extra withholding if you also have a job. See how much to set aside for taxes.

What if you live outside the US?

A freelancer who is not a US person and does the work abroad generally earns foreign-source income, which is not subject to US income tax. Platforms ask such freelancers for Form W-8BEN rather than a W-9. Your home country's tax rules apply to the income. See Form W-8BEN instructions.

Should you use an LLC on the platform?

It is not required, and a single-member LLC does not change the tax by default. See do freelancers need an LLC.

Freelancing on a platform?

We reconcile your platform earnings statements, report income and fees correctly, and set your quarterly payments.

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Questions people ask

Do I pay taxes on Upwork or Fiverr income?

Yes. It is self-employment income, subject to income tax and self-employment tax on the profit.

Will Upwork or Fiverr send me a 1099?

Platforms report payments on Form 1099-K when federal thresholds, over $20,000 and 200 transactions, or lower state thresholds are met.

Should I report my Upwork income before or after fees?

Report the gross amount clients paid, and deduct the platform fees as a business expense.

Do non-US freelancers on Upwork pay US tax?

Generally not on work done outside the US. They give the platform a Form W-8BEN.

Sources

Every fee, date and rule on this page was taken from these official and primary sources.

  1. IRS: Understanding your Form 1099-K
  2. IRS: Self-employment tax (Social Security and Medicare taxes)
  3. IRS: About Schedule C (Form 1040)
  4. IRS: Instructions for Form W-8BEN

Rules and fees change. If you are reading this long after September 30, 2026, confirm the figures with the source before you rely on them.

Freelancers and self-employedHow to file taxes as a freelancer: a first-year guideFederal tax formsForm 1099-K: what it shows and how to report itFreelancers and self-employedSelf-employment tax explained

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This guide is general information. It is not tax or legal advice for your situation.