Question 1

How much tax do I pay on Upwork income?

Accepted Answer

As an Upwork freelancer, you pay 15.3% self-employment tax on net earnings, plus federal income tax (10-37%), plus any state income tax. Set aside 25-30% of net income for taxes.

Question 2

Does Upwork send a 1099?

Accepted Answer

Yes. Upwork sends a 1099-K if you earn $5,000 or more in a calendar year. You must report all income even without a 1099.

Question 3

Can I deduct the Upwork service fee?

Accepted Answer

Yes. The Upwork service fee (5-20%) is a deductible business expense on Schedule C. You can also deduct home office, equipment, internet, and software.

Question 4

When are quarterly taxes due for Upwork freelancers in 2026?

Accepted Answer

Quarterly estimated tax due dates for 2026: April 15, June 16, September 15, and January 15, 2027.