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Who receives a 1099 form from oDesk?

Jacqueline Pittenger
posted this on February 11, 2013, 7:16 PM

The Basics

If you're based in the US and have earned money on oDesk, you do need to report your income. And because of changes in the 2012 tax laws, most W-9 freelancers—including those who earned more than $600—will no longer receive a 1099-MISC from oDesk. Freelancers based outside the US are asked to fill out a W-8BEN and are not issued forms. 

Either way, we recommend that you use your Earnings by Client report to accurately document your earnings.

The Background

One thing to remember—we are not tax experts! Please consult your accountant when tax time comes around. For official information, please visit the IRS website.

The Details

Although most freelancers will not receive IRS forms, there are a few exceptions:

  • Freelancers earning over $20,000 with more than 200 transactions – These folks will receive a new form called the 1099-K. Under the Internal Revenue Code (IRC) Section 6050W, oDesk will file a 1099-K form to the IRS for US-based freelancers earning over $20,000 USD and with over 200 separate transactions in a calendar year. They will receive a copy of their 1099-K via US Postal Service by January 31 in order to accurately report their taxes. 
  • W-2 employees – W-2 workers with employee status must be hired through oDesk Payroll. If you’re hired through the oDesk Payroll service, we handle all of the withholding and payment of taxes for you. 

Please contact Customer Support with any questions or concerns regarding 1099 forms.

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