1099 Contractor in Montana with a Maryland Client: Where Do You File?
Answer
Two possible returns, one certainty. The certainty is Montana, which taxes residents on all self-employment income and expects quarterly estimated payments. The possibility is Maryland, 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 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
- 1Quarterly estimated payments · Montana
Make quarterly estimated payments to Montana Department of Revenue on your full self-employment income — nothing is withheld from a 1099.
- 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.
- 3Resident return · MontanaForm 2 (credit for income tax paid to another state)
File the Montana resident return last and claim the credit for any tax paid to Maryland.
The two states, side by side
| Montana | Maryland | |
|---|---|---|
| Taxes wages | Yes — graduated | Yes — graduated |
| Reciprocity partners | 1 (Form MW-4) | 4 (Form MW507) |
| Convenience rule | No | No |
| Nonresident return | Form 2 with the nonresident/part-year schedule | Form 505 with Form 505NR |
| Credit for other-state tax | Form 2 (credit for income tax paid to another state) | Form 502CR |
| Nonresident safe harbour | None published | None published |
| Local income tax | No | Yes |
| Revenue department | Montana Department of Revenue | Comptroller of Maryland |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Maryland and working in Montana 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: Montana → MarylandBoth states — credit offsets the double tax
- Remote worker: Montana → MarylandHome state only
- Moved mid-year: Montana → MarylandTwo part-year returns
Other Montana pairs
Questions people actually ask
I live in Montana and my client is in Maryland. Do I have to file a Maryland tax return?
Two possible returns, one certainty. The certainty is Montana, which taxes residents on all self-employment income and expects quarterly estimated payments. The possibility is Maryland, 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 Montana and Maryland hold an agreement makes no difference to a self-employed filer — sourcing rules decide the answer instead.
How current is this?
The Montana and Maryland rules on this page were last checked against Montana Department of Revenue 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.
- Montana Department of Revenue — individual income taxaccessed 2026-08-07
- Comptroller of Maryland — individual income taxaccessed 2026-08-07
- Maryland — Form MW507accessed 2026-08-07