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

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

Answer

Arkansas taxes all of it; Maryland taxes only what you earn on its soil. Nothing is withheld from a 1099, so you pay Arkansas quarterly. A Maryland client alone creates no Maryland filing obligation — performing services inside Maryland does, and Arkansas then credits that tax.

Last verified

The client's location is the wrong thing to track. What matters is where you were sitting when you did the work — which is why a contractor's exposure to Maryland is measured in days on the ground rather than in invoices sent.

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. 1Quarterly estimated payments · Arkansas

    Make quarterly estimated payments to Arkansas Department of Finance and Administration on your full self-employment income — nothing is withheld from a 1099.

  2. 2Nonresident return · MarylandForm 505 with Form 505NR

    File a Maryland nonresident return only if you performed services inside Maryland. 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.

  3. 3Resident return · ArkansasForm AR1000TC

    File the Arkansas resident return last and claim the credit for any tax paid to Maryland.

The two states, side by side

 ArkansasMaryland
Taxes wagesYes — graduatedYes — graduated
Reciprocity partnersNone4 (Form MW507)
Convenience ruleNoNo
Nonresident returnForm AR1000NRForm 505 with Form 505NR
Credit for other-state taxForm AR1000TCForm 502CR
Nonresident safe harbourNone publishedNone published
Local income taxNoYes
Revenue departmentArkansas Department of Finance and AdministrationComptroller of Maryland
Last verified

The other direction

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

Maryland to Arkansas →

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 Arkansas pairs

Questions people actually ask

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

Arkansas taxes all of it; Maryland taxes only what you earn on its soil. Nothing is withheld from a 1099, so you pay Arkansas quarterly. A Maryland client alone creates no Maryland filing obligation — performing services inside Maryland does, and Arkansas then credits that tax.

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

How current is this?

The Arkansas and Maryland rules on this page were last checked against Arkansas Department of Finance and Administration 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.