1099 Contractor in West Virginia with a Arkansas Client: Where Do You File?
Answer
Two possible returns, one certainty. The certainty is West Virginia, which taxes residents on all self-employment income and expects quarterly estimated payments. The possibility is Arkansas, 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.
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 · West Virginia
Make quarterly estimated payments to West Virginia Tax Division 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 · West VirginiaSchedule E (Form IT-140)
File the West Virginia resident return last and claim the credit for any tax paid to Arkansas.
The two states, side by side
| West Virginia | Arkansas | |
|---|---|---|
| Taxes wages | Yes — graduated | Yes — graduated |
| Reciprocity partners | 5 (Form WV/IT-104) | None |
| Convenience rule | No | No |
| Nonresident return | Form IT-140 with Schedule A | Form AR1000NR |
| Credit for other-state tax | Schedule E (Form IT-140) | Form AR1000TC |
| Nonresident safe harbour | None published | None published |
| Local income tax | Yes | No |
| Revenue department | West Virginia Tax Division | 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 West Virginia 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: West Virginia → ArkansasBoth states — credit offsets the double tax
- Remote worker: West Virginia → ArkansasHome state only
- Moved mid-year: West Virginia → ArkansasTwo part-year returns
Other West Virginia pairs
Questions people actually ask
I live in West Virginia and my client is in Arkansas. Do I have to file a Arkansas tax return?
Two possible returns, one certainty. The certainty is West Virginia, which taxes residents on all self-employment income and expects quarterly estimated payments. The possibility is Arkansas, 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 West Virginia and Arkansas hold an agreement makes no difference to a self-employed filer — sourcing rules decide the answer instead.
How current is this?
The West Virginia and Arkansas rules on this page were last checked against West Virginia Tax Division 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.
- West Virginia Tax Division — individual income taxaccessed 2026-08-07
- Arkansas Department of Finance and Administration — individual income taxaccessed 2026-08-07