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1099 Contractor in Utah with a Hawaii Client: Where Do You File?

Home state, plus the client state if you work thereNo withholding — 1099

Answer

The client's location does not decide this. Self-employment income from personal services is sourced to where the work happens, so working from Utah keeps it Utah-source and Utah-taxed. Travel to Hawaii to work and that portion becomes Hawaii-source, needing a Hawaii nonresident 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.

Hawaii publishes no de minimis day count or dollar floor for nonresidents. Any Hawaii-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 Hawaii Department of Taxation nonresident instructions before filing.

What you file

  1. 1Quarterly estimated payments · Utah

    Make quarterly estimated payments to Utah State Tax Commission on your full self-employment income — nothing is withheld from a 1099.

  2. 2Nonresident return · HawaiiForm N-15

    File a Hawaii nonresident return only if you performed services inside Hawaii. Hawaii publishes no de minimis day count or dollar floor for nonresidents. Any Hawaii-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 Hawaii Department of Taxation nonresident instructions before filing.

  3. 3Resident return · UtahSchedule TC-40S

    File the Utah resident return last and claim the credit for any tax paid to Hawaii.

The two states, side by side

 UtahHawaii
Taxes wagesYes — flatYes — graduated
Reciprocity partnersNoneNone
Convenience ruleNoNo
Nonresident returnForm TC-40 with Schedule TC-40BForm N-15
Credit for other-state taxSchedule TC-40SSchedule CR
Nonresident safe harbourNone publishedNone published
Local income taxNoNo
Revenue departmentUtah State Tax CommissionHawaii Department of Taxation
Last verified

The other direction

Reversing the commute does not always reverse the answer. Living in Hawaii and working in Utah gives:Home state, plus the client state if you work there.

Hawaii to Utah →

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.

Other Utah pairs

Questions people actually ask

I live in Utah and my client is in Hawaii. Do I have to file a Hawaii tax return?

The client's location does not decide this. Self-employment income from personal services is sourced to where the work happens, so working from Utah keeps it Utah-source and Utah-taxed. Travel to Hawaii to work and that portion becomes Hawaii-source, needing a Hawaii nonresident 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 Utah and Hawaii hold an agreement makes no difference to a self-employed filer — sourcing rules decide the answer instead.

How current is this?

The Utah and Hawaii rules on this page were last checked against Utah State Tax Commission and Hawaii Department of Taxation 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.