1099 Contractor in California with a Virginia Client: Where Do You File?
Answer
Two possible returns, one certainty. The certainty is California, which taxes residents on all self-employment income and expects quarterly estimated payments. The possibility is Virginia, which taxes nonresidents on services actually performed inside the state — invoices sent there do not count.
Last verified
Reciprocity agreements are the first thing contractors ask about and the first thing that does not apply to them. Every agreement in the country is a wage-withholding arrangement, and a 1099 has no withholding to switch off.
Virginia publishes no de minimis day count or dollar floor for nonresidents. Any Virginia-source wage income above the state's general filing threshold requires a nonresident return, and that threshold is reset each year — check the current figure on the Virginia Department of Taxation nonresident instructions before filing.
What you file
- 1Quarterly estimated payments · California
Make quarterly estimated payments to California Franchise Tax Board on your full self-employment income — nothing is withheld from a 1099.
- 2Nonresident return · VirginiaForm 763
File a Virginia nonresident return only if you performed services inside Virginia. Virginia publishes no de minimis day count or dollar floor for nonresidents. Any Virginia-source wage income above the state's general filing threshold requires a nonresident return, and that threshold is reset each year — check the current figure on the Virginia Department of Taxation nonresident instructions before filing.
- 3Resident return · CaliforniaSchedule S
File the California resident return last and claim the credit for any tax paid to Virginia.
The two states, side by side
| California | Virginia | |
|---|---|---|
| Taxes wages | Yes — graduated | Yes — graduated |
| Reciprocity partners | None | 5 (Form VA-4) |
| Convenience rule | No | No |
| Nonresident return | Form 540NR | Form 763 |
| Credit for other-state tax | Schedule S | Schedule OSC |
| Nonresident safe harbour | None published | None published |
| Local income tax | No | No |
| Revenue department | California Franchise Tax Board | Virginia Department of Taxation |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Virginia and working in California gives:Home state, plus the client state if you work there.
Same two states, different situation
The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.
- W-2 commuter: California → VirginiaBoth states — credit offsets the double tax
- Remote worker: California → VirginiaHome state only
- Moved mid-year: California → VirginiaTwo part-year returns
Other California pairs
Questions people actually ask
I live in California and my client is in Virginia. Do I have to file a Virginia tax return?
Two possible returns, one certainty. The certainty is California, which taxes residents on all self-employment income and expects quarterly estimated payments. The possibility is Virginia, which taxes nonresidents on services actually performed inside the state — invoices sent there do not count.
Do reciprocity agreements help a 1099 contractor?
No. Every state reciprocity agreement in the country is an arrangement about wage withholding between two revenue departments, and a 1099 has no withholding to switch off. Whether California and Virginia hold an agreement makes no difference to a self-employed filer — sourcing rules decide the answer instead.
How current is this?
The California and Virginia rules on this page were last checked against California Franchise Tax Board and Virginia Department of Taxation on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.
Sources
Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.
- California Franchise Tax Board — individual income taxaccessed 2026-08-07
- Virginia Department of Taxation — individual income taxaccessed 2026-08-07
- Virginia — Form VA-4accessed 2026-08-07
- Virginia Tax — Reciprocityaccessed 2026-08-07