1099 Contractor in New Jersey with a Arkansas Client: Where Do You File?
Answer
New Jersey always, Arkansas sometimes. With no withholding on a 1099 the whole tax is yours to manage: estimate to New Jersey through the year, and file a Arkansas nonresident return for any income from work you physically performed in Arkansas, claiming the credit back on the New Jersey return.
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.
Arkansas publishes no de minimis day count or dollar floor for nonresidents. Any Arkansas-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 Arkansas Department of Finance and Administration nonresident instructions before filing.
What you file
- 1Quarterly estimated payments · New Jersey
Make quarterly estimated payments to New Jersey Division of Taxation on your full self-employment income — nothing is withheld from a 1099.
- 2Nonresident return · ArkansasForm AR1000NR
File a Arkansas nonresident return only if you performed services inside Arkansas. Arkansas publishes no de minimis day count or dollar floor for nonresidents. Any Arkansas-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 Arkansas Department of Finance and Administration nonresident instructions before filing.
- 3Resident return · New JerseySchedule NJ-COJ
File the New Jersey resident return last and claim the credit for any tax paid to Arkansas.
The two states, side by side
| New Jersey | Arkansas | |
|---|---|---|
| Taxes wages | Yes — graduated | Yes — graduated |
| Reciprocity partners | 1 (Form NJ-165) | None |
| Convenience rule | Only against convenience-rule states | No |
| Nonresident return | Form NJ-1040NR | Form AR1000NR |
| Credit for other-state tax | Schedule NJ-COJ | Form AR1000TC |
| Nonresident safe harbour | None published | None published |
| Local income tax | No | No |
| Revenue department | New Jersey Division of Taxation | Arkansas Department of Finance and Administration |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Arkansas and working in New Jersey 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: New Jersey → ArkansasBoth states — credit offsets the double tax
- Remote worker: New Jersey → ArkansasHome state only
- Moved mid-year: New Jersey → ArkansasTwo part-year returns
Other New Jersey pairs
Questions people actually ask
I live in New Jersey and my client is in Arkansas. Do I have to file a Arkansas tax return?
New Jersey always, Arkansas sometimes. With no withholding on a 1099 the whole tax is yours to manage: estimate to New Jersey through the year, and file a Arkansas nonresident return for any income from work you physically performed in Arkansas, claiming the credit back on the New Jersey 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 New Jersey and Arkansas hold an agreement makes no difference to a self-employed filer — sourcing rules decide the answer instead.
How current is this?
The New Jersey and Arkansas rules on this page were last checked against New Jersey Division of Taxation and Arkansas Department of Finance and Administration 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.
- New Jersey Division of Taxation — individual income taxaccessed 2026-08-07
- New Jersey Division of Taxation — Convenience of the Employer Ruleaccessed 2026-08-07
- Arkansas Department of Finance and Administration — individual income taxaccessed 2026-08-07