Platform taxes

Upwork and Fiverr Taxes for US Freelancers

Updated October 28, 2026 · Sources: IRS.gov · Planning information, not tax advice

In short: US freelancers selling services through Upwork or Fiverr receive Form 1099-K reporting gross payments from the platform once they cross the statutory threshold of $20,000 and 200 transactions, measured separately per platform.

Freelancing on Upwork and Fiverr offers incredible flexibility, but handling tax obligations requires understanding how these platforms report your earnings. Because Upwork and Fiverr collect client payments and act as third-party payment facilitators, they handle tax reporting differently than direct clients. Knowing which forms to expect, how to track your revenue, and which business expenses you can write off keeps your freelance business compliant and prevents you from overpaying on your tax bill.

Understanding Form 1099-K and Off-Platform Income

When you sell services through Upwork or Fiverr, the platform acts as a third-party settlement entity. If you cross the 1099-K threshold of $20,000 and 200 transactions, measured per platform, the respective marketplace issues you a Form 1099-K reporting your gross payments. This differs from a 1099-NEC. However, if clients pay you directly outside of these platforms, those clients may issue their own 1099-NEC if they cross the 2026 1099-NEC filing threshold of $2,000. Regardless of whether you receive a 1099 form, you must report all earned income on your tax return.

Deducting Service Fees and Business Costs

Running a freelance business incurs various expenses that lower your taxable income. You can deduct the platform service fees charged by Upwork and Fiverr, which significantly reduce your net earnings. Additionally, you can write off software and digital subscriptions, computers and hardware equipment, professional development courses, and a qualifying home office. If you drive to meet clients or attend industry events, you can track your business mileage using the 2026 standard mileage rate of 72.5 cents per mile from January 1 through June 30, and 76 cents per mile from July 1 onward.

Self-Employment Tax and Schedule C Reporting

As a self-employed freelancer, you must report your business revenue and deductible expenses on Schedule C, attaching it to your Form 1040. Net earnings from your freelance work are also subject to self-employment tax, which covers Social Security and Medicare at a total rate of 15.3% for the 2026 tax year. Social Security tax applies to net earnings up to the wage base cap of $184,500. You calculate this self-employment liability using Schedule SE. To help estimate your overall liabilities, you can utilize tools like the 1099 tax calculator.

Making Quarterly Estimated Tax Payments

Because freelance platforms do not withhold federal income tax or self-employment tax from your payouts, the IRS generally requires you to make quarterly estimated tax payments using Form 1040-ES if you expect to owe $1,000 or more when filing your annual return. For the 2026 tax year, the quarterly estimated due dates are April 15, 2026, June 15, 2026, September 15, 2026, and January 15, 2027. Making these payments on time helps you avoid underpayment penalties and prevents a massive tax bill at the end of the year.

What the Proofly receipt scanner does — and doesn’t

Does

Reads merchant, date, line items, tax and payment method from a photo, with a confidence meter so you can correct it before saving
Keeps personal and per-company receipts separate
Maps business expenses to Schedule C lines (meals already at 50%)
Exports an audit pack: every receipt image plus a ledger, as PDF, and CSV for QuickBooks or Xero
Has a manual mileage log priced at the IRS rate for each trip’s date

Doesn’t

File your taxes or give tax advice
Sync live with QuickBooks or Xero (it’s CSV export)
Pull transactions from your bank automatically
Track your drives by GPS
Guarantee how an audit turns out

Frequently asked questions

Will Upwork or Fiverr send me a 1099 if I earned less than the threshold?

If you do not cross the threshold of $20,000 and 200 transactions on a specific platform, that platform is not required to issue you a Form 1099-K. However, you are still legally required to report all income earned on your tax return.

Are Upwork and Fiverr service fees tax-deductible?

Yes. The service fees that Upwork and Fiverr deduct from your project earnings are considered ordinary and necessary business expenses, and you can write them off on your Schedule C to lower your taxable income.

What is the self-employment tax rate for 2026?

The self-employment tax rate is 15.3% for the 2026 tax year, which covers Social Security up to the wage cap of $184,500 and Medicare for all net earnings.

When are 2026 quarterly estimated tax payments due?

For 2026, quarterly estimated tax payments are due on April 15, 2026, June 15, 2026, September 15, 2026, and January 15, 2027.

Sources

This guide summarizes IRS guidance as of October 28, 2026 for planning purposes. It isn’t tax advice — confirm your situation with IRS.gov or a qualified tax professional.