As a freelancer, you’re responsible for paying your own taxes. You’re considered an independent contractor, not an employee of the companies you work for.
This means that the companies you work for don’t withhold taxes from your earnings. Instead, they send you a 1099-MISC form at the end of the year if you’ve earned more than $600 from them during the year.
This can be a big shock to some freelancers who are used to having taxes withheld from their paycheck. But don’t worry, there are some things you can do to make sure you stay on top of your tax responsibilities and avoid any penalties.
First, set aside money each month to cover your taxes. This will help you make sure you have the money available when it’s time to pay your taxes.
You can use an estimate of how much you’ll owe based on your earnings and deductions, or you can use last year’s tax bill as a guide. Either way, setting aside money each month will help make sure you’re prepared when tax time comes around.
Second, make sure you file your taxes on time. The IRS offers a few different options for filing your taxes, so make sure you choose the one that works best for you.
If you owe money, you may want to set up a payment plan with the IRS to avoid any penalties or interest charges.
Finally, if you have any questions about your taxes or aren’t sure how to file as a freelancer, there are plenty of resources available to help you out. The IRS website has a lot of great information, or you can talk to a tax professional to get help with your specific situation.
Conclusion:
Does UpWork withhold taxes? No, as an independent contractor you are responsible for paying your own taxes.
