1099 Contractor in Pennsylvania with a Alabama Client: Where Do You File?
Answer
Pennsylvania always, Alabama sometimes. With no withholding on a 1099 the whole tax is yours to manage: estimate to Pennsylvania through the year, and file a Alabama nonresident return for any income from work you physically performed in Alabama, claiming the credit back on the Pennsylvania 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.
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
- 1Quarterly estimated payments · Pennsylvania
Make quarterly estimated payments to Pennsylvania Department of Revenue on your full self-employment income — nothing is withheld from a 1099.
- 2Nonresident return · AlabamaForm 40NR
File a Alabama nonresident return only if you performed services inside Alabama. 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.
- 3Resident return · PennsylvaniaSchedule G-L
File the Pennsylvania resident return last and claim the credit for any tax paid to Alabama.
The two states, side by side
| Pennsylvania | Alabama | |
|---|---|---|
| Taxes wages | Yes — flat | Yes — graduated |
| Reciprocity partners | 6 (Form REV-419) | None |
| Convenience rule | Yes — general rule | No |
| Nonresident return | Form PA-40 (nonresident) | Form 40NR |
| Credit for other-state tax | Schedule G-L | Schedule CR |
| Nonresident safe harbour | None published | None published |
| Local income tax | Yes | Yes |
| Revenue department | Pennsylvania Department of Revenue | Alabama Department of Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Alabama and working in Pennsylvania 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: Pennsylvania → AlabamaBoth states — credit offsets the double tax
- Remote worker: Pennsylvania → AlabamaHome state only
- Moved mid-year: Pennsylvania → AlabamaTwo part-year returns
Other Pennsylvania pairs
Questions people actually ask
I live in Pennsylvania and my client is in Alabama. Do I have to file a Alabama tax return?
Pennsylvania always, Alabama sometimes. With no withholding on a 1099 the whole tax is yours to manage: estimate to Pennsylvania through the year, and file a Alabama nonresident return for any income from work you physically performed in Alabama, claiming the credit back on the Pennsylvania 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 Pennsylvania and Alabama hold an agreement makes no difference to a self-employed filer — sourcing rules decide the answer instead.
How current is this?
The Pennsylvania and Alabama rules on this page were last checked against Pennsylvania 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.
- Pennsylvania Department of Revenue — individual income taxaccessed 2026-08-07
- Pennsylvania — Form REV-419accessed 2026-08-07
- Pennsylvania Personal Income Tax Guide — Income Subject to Tax Withholdingaccessed 2026-08-07
- Alabama Department of Revenue — individual income taxaccessed 2026-08-07