As a freelancer on Contra, it is important to understand the tax laws in your own country and any country where you are receiving income. We suggest consulting with a tax professional or doing research on the specific tax laws in your country and the US to ensure you are in compliance.
Charging tax
On Contra, you can add inclusive tax to invoices and project payments. For digital product sales, Contra acts as the merchant of record and is responsible for calculating, collecting, and remitting taxes on the seller’s behalf.
W8-BEN
If you’re based outside of the U.S., you’ll be asked to provide information required for a W-8BEN. Contra, in partnership with our payment processors, handles W-8BEN information collection. It’s the Independent’s responsibility to provide accurate information.
W9
If you are based in the U.S., you’ll be asked to provide the information required for a W-9. Contra, in partnership with our payment processors, handles W9 information collection. It’s the Independent’s responsibility to provide accurate information.
1099-K
Contra works with multiple payment processors. Each processor (e.g., Stripe, Airwallex, PayPal, Payoneer) will issue a 1099-K to eligible Independents who meet IRS reporting thresholds, which in 2025 is $20,000 and more than 200 transactions.
For the most up-to-date threshold requirements, please refer to the IRS website or the Understanding Your Form 1099-K page here.
Your 1099-K reflects the total amount processed through your selected payment processor (net of fees) during the year. This is based on when funds are transferred to your linked account for withdrawal and may not match your actual earnings.
If you receive payments from other platforms that use the same processor (e.g., you linked your Stripe account to Contra and another platform where you earn), those amounts may be consolidated into a single 1099-K.
1099-Ks are not visible or accessible to clients.
If you do not meet the IRS reporting threshold (for 2025, $20,000 and more than 200 transactions), a 1099-K will not be generated or filed on your behalf. However, we can provide a draft upon request. Please contact hello@contra.com.
FAQ's
Why don't I receive a 1099-NEC?
Why don't I receive a 1099-NEC?
Because your clients pay Contra directly, Contra is your payer of record, not your client. Stripe will issue your 1099-K on our behalf, which is how income from Contra is reported to the IRS.
What if I don't meet the threshold?
What if I don't meet the threshold?
Email us and we can still send you a draft 1099-K for your reference.
Does Contra send the 1099-K or does my client?
Does Contra send the 1099-K or does my client?
Contra sends the 1099-K if you meet the threshold
Can I edit information on my 1099-K?
Can I edit information on my 1099-K?
Your 1099 can only be modified once it is accepted by the IRS. Once the IRS accepts the filling, just let us know and we can modify the information for you!
Is my tax information shared?
Is my tax information shared?
The tax information collected when verifying your identity is not shared with any institutions. It is simply collected and stored on Persona for identity verification purposes.
Why is my 1099 income higher than expected?
Why is my 1099 income higher than expected?
This is because Stripe sends a single 1099 to individuals for all activity they have had through Stripe that year. This means that if you had earnings from another platform on Stripe, it was added together with your payouts on Contra.
I need help with something else
I need help with something else
For other tax questions, please consult with a tax professional.