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Level 1
posted Mar 13, 2020 5:40:49 PM

SE delivery driver working across two states - WA and OR- how to split income across states

Self-employed delivery driver lives in Vancouver WA and as part of his work delivers goods/food/Amazon between WA and OR. Only one of his 1099's is from a company registered in OR and states OR income. All others are from WA companies and no state income shown. Does he need to split his income between the two states based on the miles driven? Or it is split based on the location of the company that issued 1099? Thank you!

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3 Replies
Expert Alumni
Mar 13, 2020 5:56:25 PM

As a delivery driver, your income is considered earned in your home state. If one of your 1099-MISC shows OR income but no OR tax withholding, then you only have to file a WA state return allocating all your self-employed income to WA.

 

If you had OR tax withheld, you have to file a non-resident OR return to have a refund of tax withheld.

Level 1
Mar 16, 2020 5:34:41 AM

Thank you for your response! Why is income considered earned in home state when the driving was roughly estimated 50% in WA and 50% in OR? 

Expert Alumni
Mar 16, 2020 6:57:29 AM

Unfortunately, OR taxes based on the location of the client.  You will need to file the nonresident OR return to account for the 1099 from the OR client only.