Elance offers clients an optional 1099 service for clients who want Elance to file corresponding tax forms on their behalf. Additionally, Elance will issue 1099-K forms directly to U.S. based freelancers who are considered a U.S. Person and XX, provided they are not receiving a 1099-MISC.
In order to process and deliver 1099 forms, Elance will collect the Taxpayer Identification Number (TIN) from any freelancer who is a “U.S. Person” by requesting the freelancer to complete and submit the W-9 Request for Taxpayer Identification Number and Certification online.
Who needs to submit the W-9 Form?
You need to submit the W-9 form if all of the following apply to you:
For U.S. Federal Tax purposes, you are considered a U.S. Person (see below):
You have not submitted a W-9 form to Elance previously and are making a withdrawal from your Elance account.
Am I considered a “U.S. Person?”
For U.S. federal tax purposes, you are considered a U.S. Person if you are one of the following:
An individual who is a U.S. citizen or a U.S. resident alien
A partnership, corporation, company or association created or organized in the United States or under the laws of the United States
An estate (other than a foreign estate)
A domestic trust (as defined in U.S. tax regulations)
What if I am not a U.S. Person?
If you are not a U.S. Person as defined above, then you do not need to submit a W-9 form. If you are awarded a job with Elance’s 1099 service and are asked for your U.S. Person status, indicate that you are NOT a U.S. Person and you will be able to proceed with the job.
What happens if I don't submit the W-9 Form?
If you do not submit the W-9 information online, you will not be able to withdraw funds.
How do I complete my W-9 Form?
To complete or update your W-9 information, log in to your account and follow the steps below:
Log into your Elance account.
Click on the "Settings" link under your username at the top of the Elance site.
Click the "Billing & Payment" link on the left menu.
Click the "W9 Info" link to view and update your details.
What 1099 form will I receive?
A 1099-K is issued to U.S. based freelancers who are U.S. Persons who have engaged in more than 200 payment transactions on the platform resulting in more than $20,000 gross revenue. A 1099-MISC form is issued to U.S. based freelancers who are U.S. Persons who have earned more than $600 during a calendar year from an individual client. If the freelancer does not qualify for a 1099-K, then the freelancer will receive a 1099-MISC on behalf of clients who have opted into Elance's 1099 service.