1099 Contractor in North Dakota with a District of Columbia Client: Where Do You File?
Answer
Two possible returns, one certainty. The certainty is North Dakota, which taxes residents on all self-employment income and expects quarterly estimated payments. The possibility is District of Columbia, which taxes nonresidents on services actually performed inside the state — invoices sent there do not count.
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.
Nonresidents have no District filing obligation on wages, whatever the amount or the number of days worked. Form D-40B exists only to recover District tax that an employer withheld in error.
What you file
- 1Quarterly estimated payments · North Dakota
Make quarterly estimated payments to North Dakota Office of State Tax Commissioner on your full self-employment income — nothing is withheld from a 1099.
- 2Nonresident return · District of ColumbiaForm D-40B (Nonresident Request for Refund)
File a District of Columbia nonresident return only if you performed services inside District of Columbia. Nonresidents have no District filing obligation on wages, whatever the amount or the number of days worked. Form D-40B exists only to recover District tax that an employer withheld in error.
- 3Resident return · North DakotaSchedule ND-1CR
File the North Dakota resident return last and claim the credit for any tax paid to District of Columbia.
The two states, side by side
| North Dakota | District of Columbia | |
|---|---|---|
| Taxes wages | Yes — graduated | Yes — graduated |
| Reciprocity partners | 2 (Form NDW-R) | 2 (Form D-4A) |
| Convenience rule | No | No |
| Nonresident return | Form ND-1 with Schedule ND-1NR | None — nonresidents exempt |
| Credit for other-state tax | Schedule ND-1CR | Schedule U (Form D-40) |
| Nonresident safe harbour | None published | Not applicable |
| Local income tax | No | No |
| Revenue department | North Dakota Office of State Tax Commissioner | District of Columbia Office of Tax and Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in District of Columbia and working in North Dakota 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: North Dakota → District of ColumbiaNonresidents are exempt by statute
- Remote worker: North Dakota → District of ColumbiaHome state only
- Moved mid-year: North Dakota → District of ColumbiaTwo part-year returns
Other North Dakota pairs
Questions people actually ask
I live in North Dakota and my client is in District of Columbia. Do I have to file a District of Columbia tax return?
Two possible returns, one certainty. The certainty is North Dakota, which taxes residents on all self-employment income and expects quarterly estimated payments. The possibility is District of Columbia, 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 North Dakota and District of Columbia hold an agreement makes no difference to a self-employed filer — sourcing rules decide the answer instead.
How current is this?
The North Dakota and District of Columbia rules on this page were last checked against North Dakota Office of State Tax Commissioner and District of Columbia Office of Tax and 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.
- North Dakota Office of State Tax Commissioner — individual income taxaccessed 2026-08-07
- District of Columbia Office of Tax and Revenue — individual income taxaccessed 2026-08-07