1099 Contractor in Arkansas with a Montana 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 Arkansas keeps it Arkansas-source and Arkansas-taxed. Travel to Montana to work and that portion becomes Montana-source, needing a Montana nonresident return.
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 Montana is measured in days on the ground rather than in invoices sent.
Montana publishes no de minimis day count or dollar floor for nonresidents. Any Montana-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 Montana Department of Revenue nonresident instructions before filing.
What you file
- 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.
- 2Nonresident return · MontanaForm 2 with the nonresident/part-year schedule
File a Montana nonresident return only if you performed services inside Montana. Montana publishes no de minimis day count or dollar floor for nonresidents. Any Montana-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 Montana Department of Revenue nonresident instructions before filing.
- 3Resident return · ArkansasForm AR1000TC
File the Arkansas resident return last and claim the credit for any tax paid to Montana.
The two states, side by side
| Arkansas | Montana | |
|---|---|---|
| Taxes wages | Yes — graduated | Yes — graduated |
| Reciprocity partners | None | 1 (Form MW-4) |
| Convenience rule | No | No |
| Nonresident return | Form AR1000NR | Form 2 with the nonresident/part-year schedule |
| Credit for other-state tax | Form AR1000TC | Form 2 (credit for income tax paid to another state) |
| Nonresident safe harbour | None published | None published |
| Local income tax | No | No |
| Revenue department | Arkansas Department of Finance and Administration | Montana Department of Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Montana and working in Arkansas 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: Arkansas → MontanaBoth states — credit offsets the double tax
- Remote worker: Arkansas → MontanaHome state only
- Moved mid-year: Arkansas → MontanaTwo part-year returns
Other Arkansas pairs
Questions people actually ask
I live in Arkansas and my client is in Montana. Do I have to file a Montana 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 Arkansas keeps it Arkansas-source and Arkansas-taxed. Travel to Montana to work and that portion becomes Montana-source, needing a Montana 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 Arkansas and Montana hold an agreement makes no difference to a self-employed filer — sourcing rules decide the answer instead.
How current is this?
The Arkansas and Montana rules on this page were last checked against Arkansas Department of Finance and Administration and Montana 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.
- Arkansas Department of Finance and Administration — individual income taxaccessed 2026-08-07
- Montana Department of Revenue — individual income taxaccessed 2026-08-07