1099 Contractor in Texas with a Minnesota Client: Where Do You File?
Answer
Usually nothing is due anywhere. As a Texas resident you file no state return, and Minnesota reaches only the part of your self-employment income that comes from work physically done inside Minnesota. Keep a record of any days you spend working on Minnesota soil.
Last verified
The most common contractor worry — that invoicing an out-of-state client creates a filing obligation there — is usually unfounded. What creates the obligation is physical presence, and Texas residents have no home-state return in any case.
Minnesota publishes no de minimis day count or dollar floor for nonresidents. Any Minnesota-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 Minnesota Department of Revenue nonresident instructions before filing.
What you file
- 1Nonresident return · MinnesotaForm M1 with Schedule M1NR
File a Minnesota nonresident return only for income from services you physically performed in Minnesota. Texas does not tax wage or self-employment income.
The two states, side by side
| Texas | Minnesota | |
|---|---|---|
| Taxes wages | No | Yes — graduated |
| Reciprocity partners | None | 2 (Form MWR) |
| Convenience rule | No | No |
| Nonresident return | Not applicable | Form M1 with Schedule M1NR |
| Credit for other-state tax | No income tax | Schedule M1CR |
| Nonresident safe harbour | Not applicable | None published |
| Local income tax | No | No |
| Revenue department | Texas Comptroller of Public Accounts | Minnesota Department of Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Minnesota and working in Texas gives:Home state only — estimated payments.
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: Texas → MinnesotaWork state only
- Remote worker: Texas → MinnesotaNo state income tax on your wages
- Moved mid-year: Texas → MinnesotaOne part-year return — the state you moved to
Other Texas pairs
Questions people actually ask
I live in Texas and my client is in Minnesota. Do I have to file a Minnesota tax return?
Usually nothing is due anywhere. As a Texas resident you file no state return, and Minnesota reaches only the part of your self-employment income that comes from work physically done inside Minnesota. Keep a record of any days you spend working on Minnesota soil.
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 Texas and Minnesota hold an agreement makes no difference to a self-employed filer — sourcing rules decide the answer instead.
How current is this?
The Texas and Minnesota rules on this page were last checked against Texas Comptroller of Public Accounts and Minnesota 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.
- Texas Comptroller of Public Accounts — individual income taxaccessed 2026-08-07
- Minnesota Department of Revenue — individual income taxaccessed 2026-08-07