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1099 Contractor in Michigan with a Oregon Client: Where Do You File?

Home state, plus the client state if you work thereNo withholding — 1099

Answer

Pay Michigan by instalments, and watch your Oregon days. Reciprocity agreements do not help here: every one of them covers wage withholding, and a 1099 has no withholding to switch off. Michigan taxes the full profit, Oregon taxes the on-site share, and the Michigan credit reconciles them.

Last verified

The client's location is the wrong thing to track. What matters is where you were sitting when you did the work — which is why a contractor's exposure to Oregon is measured in days on the ground rather than in invoices sent.

Oregon publishes no de minimis day count or dollar floor for nonresidents. Any Oregon-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 Oregon Department of Revenue nonresident instructions before filing.

What you file

  1. 1Quarterly estimated payments · Michigan

    Make quarterly estimated payments to Michigan Department of Treasury on your full self-employment income — nothing is withheld from a 1099.

  2. 2Nonresident return · OregonForm OR-40-N

    File a Oregon nonresident return only if you performed services inside Oregon. Oregon publishes no de minimis day count or dollar floor for nonresidents. Any Oregon-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 Oregon Department of Revenue nonresident instructions before filing.

  3. 3Resident return · MichiganForm MI-1040 (credit for income tax imposed by another state)

    File the Michigan resident return last and claim the credit for any tax paid to Oregon.

The two states, side by side

 MichiganOregon
Taxes wagesYes — flatYes — graduated
Reciprocity partners6 (Form MI-W4)None
Convenience ruleNoNo
Nonresident returnForm MI-1040 with Schedule NRForm OR-40-N
Credit for other-state taxForm MI-1040 (credit for income tax imposed by another state)Schedule OR-ASC-NP
Nonresident safe harbourNone publishedNone published
Local income taxYesYes
Revenue departmentMichigan Department of TreasuryOregon Department of Revenue
Last verified

The other direction

Reversing the commute does not always reverse the answer. Living in Oregon and working in Michigan gives:Home state, plus the client state if you work there.

Oregon to Michigan →

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.

Other Michigan pairs

Questions people actually ask

I live in Michigan and my client is in Oregon. Do I have to file a Oregon tax return?

Pay Michigan by instalments, and watch your Oregon days. Reciprocity agreements do not help here: every one of them covers wage withholding, and a 1099 has no withholding to switch off. Michigan taxes the full profit, Oregon taxes the on-site share, and the Michigan credit reconciles them.

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 Michigan and Oregon hold an agreement makes no difference to a self-employed filer — sourcing rules decide the answer instead.

How current is this?

The Michigan and Oregon rules on this page were last checked against Michigan Department of Treasury and Oregon Department of Revenue 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.