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1099 Contractor in Alaska with a Maryland Client: Where Do You File?

Client state only, if you work thereNo withholding — 1099

Answer

Maryland only, and only for on-site work. Nothing is withheld from a 1099, and Alaska levies no income tax, so the single question is whether any of the services were performed in Maryland. If none were, no Maryland nonresident return is required.

Last verified

The most common contractor worry — that invoicing an out-of-state client creates a filing obligation there — is usually unfounded. What creates the obligation is physical presence, and Alaska residents have no home-state return in any case.

Maryland publishes no de minimis day count or dollar floor for nonresidents. Any Maryland-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 Comptroller of Maryland nonresident instructions before filing.

What you file

  1. 1Nonresident return · MarylandForm 505 with Form 505NR

    File a Maryland nonresident return only for income from services you physically performed in Maryland. Alaska does not tax wage or self-employment income.

The two states, side by side

 AlaskaMaryland
Taxes wagesNoYes — graduated
Reciprocity partnersNone4 (Form MW507)
Convenience ruleNoNo
Nonresident returnNot applicableForm 505 with Form 505NR
Credit for other-state taxNo income taxForm 502CR
Nonresident safe harbourNot applicableNone published
Local income taxNoYes
Revenue departmentAlaska Department of Revenue — Tax DivisionComptroller of Maryland
Last verified

The other direction

Reversing the commute does not always reverse the answer. Living in Maryland and working in Alaska gives:Home state only — estimated payments.

Maryland to Alaska →

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 Alaska pairs

Questions people actually ask

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

Maryland only, and only for on-site work. Nothing is withheld from a 1099, and Alaska levies no income tax, so the single question is whether any of the services were performed in Maryland. If none were, no Maryland nonresident return is required.

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

How current is this?

The Alaska and Maryland rules on this page were last checked against Alaska Department of Revenue — Tax Division and Comptroller of Maryland 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.