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

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

Answer

Pay Vermont 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. Vermont taxes the full profit, Oregon taxes the on-site share, and the Vermont credit reconciles them.

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.

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 · Vermont

    Make quarterly estimated payments to Vermont Department of Taxes 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 · VermontSchedule IN-117

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

The two states, side by side

 VermontOregon
Taxes wagesYes — graduatedYes — graduated
Reciprocity partnersNoneNone
Convenience ruleNoNo
Nonresident returnForm IN-111 with Schedule IN-113Form OR-40-N
Credit for other-state taxSchedule IN-117Schedule OR-ASC-NP
Nonresident safe harbourNone publishedNone published
Local income taxNoYes
Revenue departmentVermont Department of TaxesOregon Department of Revenue
Last verified

The other direction

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

Oregon to Vermont →

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 Vermont pairs

Questions people actually ask

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

Pay Vermont 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. Vermont taxes the full profit, Oregon taxes the on-site share, and the Vermont 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 Vermont and Oregon hold an agreement makes no difference to a self-employed filer — sourcing rules decide the answer instead.

How current is this?

The Vermont and Oregon rules on this page were last checked against Vermont Department of Taxes 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.