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 information required for a W9. Contra, in partnership with our payment processors, handles W9 information collection. It’s the Independent’s responsibility to provide accurate information.
1099-K
For US Based Independents, Contra, in partnership with our payment processor, Stripe, will automatically issue a 1099-K to eligible Independents who meet the IRS reporting threshold. For the most up-to-date threshold requirements, please refer to the IRS website. 1099-Ks are not visible or accessible to clients.
To be eligible for a 1099-K for the 2025 tax year, you must have earned over $20,000 and completed more than 200 transactions in 2025.
If you do not meet the IRS threshold, a 1099-K will not be officially created or filed on your behalf. However, we can provide a draft document upon request - just reach out to hello@contra.com for this!
FAQ's
Can I edit information on my 1099?
Can I edit information on my 1099?
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.