1099 Contractor in Michigan with a Missouri Client: Where Do You File?
Answer
Michigan taxes all of it; Missouri taxes only what you earn on its soil. Nothing is withheld from a 1099, so you pay Michigan quarterly. A Missouri client alone creates no Missouri filing obligation — performing services inside Missouri does, and Michigan then credits that tax.
Last verified
Reciprocity agreements are the first thing contractors ask about and the first thing that does not apply to them. Every agreement in the country is a wage-withholding arrangement, and a 1099 has no withholding to switch off.
Missouri publishes no de minimis day count or dollar floor for nonresidents. Any Missouri-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 Missouri Department of Revenue nonresident instructions before filing.
What you file
- 1Quarterly estimated payments · Michigan
Make quarterly estimated payments to Michigan Department of Treasury on your full self-employment income — nothing is withheld from a 1099.
- 2Nonresident return · MissouriForm MO-1040 with Form MO-NRI
File a Missouri nonresident return only if you performed services inside Missouri. Missouri publishes no de minimis day count or dollar floor for nonresidents. Any Missouri-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 Missouri Department of Revenue nonresident instructions before filing.
- 3Resident return · MichiganForm MI-1040 (credit for income tax imposed by another state)
File the Michigan resident return last and claim the credit for any tax paid to Missouri.
The two states, side by side
| Michigan | Missouri | |
|---|---|---|
| Taxes wages | Yes — flat | Yes — graduated |
| Reciprocity partners | 6 (Form MI-W4) | None |
| Convenience rule | No | No |
| Nonresident return | Form MI-1040 with Schedule NR | Form MO-1040 with Form MO-NRI |
| Credit for other-state tax | Form MI-1040 (credit for income tax imposed by another state) | Form MO-CR |
| Nonresident safe harbour | None published | None published |
| Local income tax | Yes | Yes |
| Revenue department | Michigan Department of Treasury | Missouri Department of Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Missouri and working in Michigan 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: Michigan → MissouriBoth states — credit offsets the double tax
- Remote worker: Michigan → MissouriHome state only
- Moved mid-year: Michigan → MissouriTwo part-year returns
Other Michigan pairs
Questions people actually ask
I live in Michigan and my client is in Missouri. Do I have to file a Missouri tax return?
Michigan taxes all of it; Missouri taxes only what you earn on its soil. Nothing is withheld from a 1099, so you pay Michigan quarterly. A Missouri client alone creates no Missouri filing obligation — performing services inside Missouri does, and Michigan 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 Michigan and Missouri hold an agreement makes no difference to a self-employed filer — sourcing rules decide the answer instead.
How current is this?
The Michigan and Missouri rules on this page were last checked against Michigan Department of Treasury and Missouri 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.
- Michigan Department of Treasury — individual income taxaccessed 2026-08-07
- Missouri Department of Revenue — individual income taxaccessed 2026-08-07