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1099 Contractor in Florida with a Alabama Client: Where Do You File?

Client state only, if you work thereNo withholding — 1099

Answer

One state at most. Florida does not tax earned income; Alabama does, but only what is sourced to Alabama. For a contractor working entirely from Florida, that source amount is normally zero regardless of where the invoices are sent.

Last verified

Two things make this pairing simple. Florida levies no personal income tax, so there is no resident return; and Alabama taxes nonresidents only on services actually performed inside Alabama, which for a fully remote contractor is normally nothing.

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

What you file

  1. 1Nonresident return · AlabamaForm 40NR

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

The two states, side by side

 FloridaAlabama
Taxes wagesNoYes — graduated
Reciprocity partnersNoneNone
Convenience ruleNoNo
Nonresident returnNot applicableForm 40NR
Credit for other-state taxNo income taxSchedule CR
Nonresident safe harbourNot applicableNone published
Local income taxNoYes
Revenue departmentFlorida Department of RevenueAlabama Department of Revenue
Last verified

The other direction

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

Alabama to Florida →

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 Florida pairs

Questions people actually ask

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

One state at most. Florida does not tax earned income; Alabama does, but only what is sourced to Alabama. For a contractor working entirely from Florida, that source amount is normally zero regardless of where the invoices are sent.

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

How current is this?

The Florida and Alabama rules on this page were last checked against Florida Department of Revenue and Alabama 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.