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1099 Contractor in Delaware with a Mississippi Client: Where Do You File?

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

Answer

Two possible returns, one certainty. The certainty is Delaware, which taxes residents on all self-employment income and expects quarterly estimated payments. The possibility is Mississippi, which taxes nonresidents on services actually performed inside the state — invoices sent there do not count.

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 Mississippi is measured in days on the ground rather than in invoices sent.

Mississippi publishes no de minimis day count or dollar floor for nonresidents. Any Mississippi-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 Mississippi Department of Revenue nonresident instructions before filing.

What you file

  1. 1Quarterly estimated payments · Delaware

    Make quarterly estimated payments to Delaware Division of Revenue on your full self-employment income — nothing is withheld from a 1099.

  2. 2Nonresident return · MississippiForm 80-205

    File a Mississippi nonresident return only if you performed services inside Mississippi. Mississippi publishes no de minimis day count or dollar floor for nonresidents. Any Mississippi-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 Mississippi Department of Revenue nonresident instructions before filing.

  3. 3Resident return · DelawareSchedule I (Form PIT-RES)

    File the Delaware resident return last and claim the credit for any tax paid to Mississippi.

The two states, side by side

 DelawareMississippi
Taxes wagesYes — graduatedYes — flat
Reciprocity partnersNoneNone
Convenience ruleYes — general ruleNo
Nonresident returnForm PIT-NONForm 80-205
Credit for other-state taxSchedule I (Form PIT-RES)Form 80-160
Nonresident safe harbourNone publishedNone published
Local income taxYesNo
Revenue departmentDelaware Division of RevenueMississippi Department of Revenue
Last verified

The other direction

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

Mississippi to Delaware →

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 Delaware pairs

Questions people actually ask

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

Two possible returns, one certainty. The certainty is Delaware, which taxes residents on all self-employment income and expects quarterly estimated payments. The possibility is Mississippi, which taxes nonresidents on services actually performed inside the state — invoices sent there do not count.

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

How current is this?

The Delaware and Mississippi rules on this page were last checked against Delaware Division of Revenue and Mississippi 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.