1099 Contractor in Virginia with a Oregon Client: Where Do You File?
Answer
The client's location does not decide this. Self-employment income from personal services is sourced to where the work happens, so working from Virginia keeps it Virginia-source and Virginia-taxed. Travel to Oregon to work and that portion becomes Oregon-source, needing a Oregon nonresident return.
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
- 1Quarterly estimated payments · Virginia
Make quarterly estimated payments to Virginia Department of Taxation on your full self-employment income — nothing is withheld from a 1099.
- 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.
- 3Resident return · VirginiaSchedule OSC
File the Virginia resident return last and claim the credit for any tax paid to Oregon.
The two states, side by side
| Virginia | Oregon | |
|---|---|---|
| Taxes wages | Yes — graduated | Yes — graduated |
| Reciprocity partners | 5 (Form VA-4) | None |
| Convenience rule | No | No |
| Nonresident return | Form 763 | Form OR-40-N |
| Credit for other-state tax | Schedule OSC | Schedule OR-ASC-NP |
| Nonresident safe harbour | None published | None published |
| Local income tax | No | Yes |
| Revenue department | Virginia Department of Taxation | Oregon Department of Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Oregon and working in Virginia 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: Virginia → OregonBoth states — credit offsets the double tax
- Remote worker: Virginia → OregonHome state only
- Moved mid-year: Virginia → OregonTwo part-year returns
Other Virginia pairs
Questions people actually ask
I live in Virginia and my client is in Oregon. Do I have to file a Oregon tax return?
The client's location does not decide this. Self-employment income from personal services is sourced to where the work happens, so working from Virginia keeps it Virginia-source and Virginia-taxed. Travel to Oregon to work and that portion becomes Oregon-source, needing a Oregon nonresident return.
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 Virginia and Oregon hold an agreement makes no difference to a self-employed filer — sourcing rules decide the answer instead.
How current is this?
The Virginia and Oregon rules on this page were last checked against Virginia Department of Taxation 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.
- Virginia Department of Taxation — individual income taxaccessed 2026-08-07
- Virginia — Form VA-4accessed 2026-08-07
- Virginia Tax — Reciprocityaccessed 2026-08-07
- Oregon Department of Revenue — individual income taxaccessed 2026-08-07