What happens if I freelance without an ITIN?

Freelance platforms like Upwork, Fiverr, and Toptal will apply a 24% to 30% backup withholding on your earnings if you do not provide a valid ITIN on your W-8BEN form. You lose a significant portion of your income to withholding that could be reduced or eliminated with an ITIN and a tax treaty claim.

Can I use an ITIN on Fiverr?

Yes. Fiverr accepts ITINs on the W-8BEN form during their tax onboarding process. Once you submit your ITIN, Fiverr adjusts your withholding rate based on the tax treaty between the US and your country of residence. Without an ITIN, Fiverr withholds 30% of your US-sourced earnings by default.

How long does it take to get an ITIN as a freelancer?

The IRS processes ITIN applications in 7 to 11 weeks when filed by mail. Using a Certifying Acceptance Agent (CAA) like itin.so can speed up the process because your documents are pre-verified. Plan to apply well before tax season so your ITIN is ready when you need it.

Do I need to file a US tax return as a freelancer with an ITIN?

Yes. Non-US freelancers who earn income from US sources must file Form 1040-NR each year. Your ITIN is required on this return. Filing allows you to report income, claim treaty benefits, deduct business expenses, and request a refund for any over-withheld taxes.

Can I open a US bank account as a freelancer with an ITIN?

Yes. Many US banks accept ITINs for opening personal checking and savings accounts. Banks like Mercury, Wise, and Relay allow remote account opening for non-US residents. A US bank account makes it easier to receive freelance payments and manage your earnings in USD.

ITIN for Freelancers: Upwork Fiverr and Toptal Guide

Non-US freelancers working as independent contractors need an ITIN (Individual Taxpayer Identification Number) to report US-sourced income and avoid heavy tax withholding. An ITIN for independent contractors allows you to submit a W-8BEN form on platforms like Upwork, Fiverr, and Toptal, claim tax treaty benefits, and keep more of what you earn. Without an ITIN, these platforms withhold up to 30% of your payments by default. This guide walks you through every step of getting and using your ITIN as a freelancer.

Why Freelancers Need an ITIN

When you perform work for US-based clients through freelance platforms, your income is considered US-sourced. The IRS requires these platforms to collect tax identification information from every contractor. If you are not a US citizen or resident and do not have a Social Security Number, your tax ID is an ITIN.

Without an ITIN, freelance platforms apply backup withholding at 24% to 30% on all your US-sourced earnings. For a freelancer earning $5,000 per month, that means $1,200 to $1,500 withheld every month before you receive anything. With an ITIN and a valid W-8BEN form, you can reduce this withholding to 15%, 10%, or even 0% depending on the tax treaty between the US and your country.

If you are not sure whether you qualify, read our guide on who needs an ITIN.

W-8BEN Form Requirements for ITIN Independent Contractors

The W-8BEN (Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting) is the form every non-US freelancer must complete. It tells the platform and the IRS that you are a foreign person and establishes your withholding rate.

To complete the W-8BEN, you need the following information:

Your full legal name (matching your passport)
Country of citizenship and country of residence
Your ITIN in the US taxpayer identification number field
Foreign tax identification number (from your home country)
Tax treaty article number and withholding rate you are claiming

The W-8BEN is valid for three calendar years from the date you sign it, plus the remainder of the year in which you sign. After that, you must submit a new one. Each freelance platform has its own process for collecting the W-8BEN, but all of them require it.

Platform-Specific ITIN Guidance

Upwork

Upwork requires all freelancers to complete a tax information interview when they first join or when they start earning from US-based clients. During this interview, non-US freelancers select the W-8BEN form and enter their ITIN. Upwork validates the information with the IRS and adjusts your withholding rate accordingly. If you skip this step, Upwork withholds 30% of your US-sourced earnings. Upwork sends a 1042-S form at year-end summarizing your earnings and any taxes withheld.

Fiverr

Fiverr collects tax information through a similar onboarding flow. Non-US sellers complete a W-8BEN form directly within their Fiverr account settings. Once your ITIN is submitted and verified, your withholding rate drops from 30% to whatever your tax treaty allows. Fiverr also issues a 1042-S form annually. Keep in mind that Fiverr service fees are separate from tax withholding, so factor both into your pricing.

Toptal

Toptal works with higher-value contracts and requires freelancers to submit tax documentation before receiving their first payment. Non-US contractors provide a W-8BEN with their ITIN. Because Toptal contracts tend to involve larger sums, the difference between 30% withholding and a reduced treaty rate can amount to thousands of dollars per project. Getting your ITIN before joining Toptal ensures you start earning at the correct rate from day one.

Tax Obligations for Non-US Freelancers

Beyond the W-8BEN form, non-US freelancers have annual tax filing obligations. You must file Form 1040-NR each year to report your US-sourced freelance income. This return calculates your actual tax liability and allows you to claim deductions for business expenses like software subscriptions, equipment, and platform fees.

If more tax was withheld than you actually owe, filing a return is the only way to get a refund. Many freelancers leave money on the table by not filing. Learn more about how to file US taxes as a freelancer with your ITIN.

Keep records throughout the year:

Track all income from each platform, save your 1042-S forms, and document your business expenses. Good record keeping makes tax filing faster and helps you claim every deduction you are entitled to.

Banking for Freelancers with an ITIN

Having a US bank account simplifies how you receive freelance payments. Your ITIN lets you open a US bank account as a freelancer. Banks like Mercury, Wise, and Relay accept ITINs and allow remote account opening, so you do not need to visit a US branch.

A US bank account lets you receive payments in USD without conversion fees on each transaction. You can also use it with payment processors for clients outside of freelance platforms. For freelancers who also accept payments through PayPal or Stripe, see our guide on ITIN for PayPal and Stripe verification.

ITIN for Freelancers and Independent Contractors

Frequently Asked Questions About ITIN for Freelancers

Yes. If you are a non-US freelancer earning income from US-based clients on Upwork, you need an ITIN to complete your W-8BEN form and reduce the default 30% tax withholding. Upwork requires a valid US tax identification number from all freelancers who receive payments sourced from US clients.

Ready to stop losing 30% of your freelance income to withholding?

Apply for Your ITIN Today