US Tax Reporting (1099-K and W-8BEN-E)
The Internal Revenue Service (IRS) requires freelancers to track their payments and report their income on their tax return. If you are a freelancer and the IRS defines you as a “U.S Person”, this requirement applies to you.
Since January 2022, Freelancer.com has automated the reporting process by supplying both you and the IRS with your 1099-K form. It was previously implemented that the reporting threshold for 2023 is $600 USD. However, on November 21, 2023, the IRS announced the delay of the $600 USD Form 1099-K reporting threshold. As a result, reporting will not be required unless you receive over $20,000 and have more than 200 transactions in a financial year.
Reporting is only possible for users with valid tax information -- Employer Identification Number (EIN), Individual Tax ID Number (ITIN) or Social Security Number (SSN). To update your tax details, follow these steps:
1. Click your profile picture thumbnail from the main menu bar, and choose Settings.
2. Click Payment & Financials.
3. Go to the Tax Information section.
4. Choose your Tax Identification Type from the dropdown.
5. Provide your EIN/SSN/ITIN and the exact individual/entity name linked to it.
6. Click Update Tax Information to save changes.
1099-K certificates generated for you will be available in the Tax Statements tab once available.
To ensure compliance with IRS’ 1099-K reporting, we will withhold 24% tax from your gross earnings for the financial year if you have missing or incorrect tax details. Tax withheld will be paid out once you provide your TIN within the same financial year or if you do not meet the threshold after the end of a financial year. For more information, click here.
The W-8BEN-E form is mandated by the US Internal Revenue Service (IRS) to document correct taxpayer information for non-US individuals for the purpose of correct tax collection and reporting.
You can get your W8-BEN-E form pre-filled with Freelancer.com’s information by contacting us. Simply scroll down and click the Contact Us button.
You can also use this blank form. Other forms required for your taxation needs can be downloaded from https://www.irs.gov/.
Disclaimer: Freelancer and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors.
Last update: November 29, 2023