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April 4, 2024
Question

1099 earnings split between 2 states

  • April 4, 2024
  • 1 reply
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I am a resident of California and self-employed. In 2023 I worked for a company based in Oregon. Part of the year I was physically working in OR (the work required me to be present there) and the other part of the year I was working remotely from California. Aside from investments, this is the only income I earned in 2023. Should I split my earnings between OR and CA, noting the amount earned while physically present in OR and the remote work going to CA, or leave it all as OR income?

 

When I fill in the 1099 portion of my tax form, I listed my total income for the year. I'm not sure if I can split it between the two states.

 

Thank you for looking

1 reply

April 5, 2024

No, don't split your income between the two states. 

You need to file CA resident return and OR non-resident return. 

 

As a resident all income is taxable on CA return. For OR, The income tax for nonresidents is based on taxable income from Oregon sources.

The income earned while you were working in OR is considered Oregon source income.

 

For accurate calculation, prepare your non-resident return first. On CA return, you may qualify for a credit for income taxes paid to OR.

How do I file a nonresident state return?

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