topic Re: nonresident returns for 1099-NEC in Self employed

nonresident returns for 1099-NEC

sr41 — Mon, 23 Feb 2026 13:21:53 GMT

I live in Virginia and work as an independent contractor/self -employed for a consulting firm that has an office in Maryland and is headquartered in Pennsylvania. I received a 1099-NEC with box 1 - nonemployee compensation - filled out. I have never been to the offices in Maryland or Pennsylvania. I work exclusively from home providing services through the consulting firm to a government entity in Maryland. I paid estimated taxes only to Virginia for 2022 (none were withheld by the firm on the 1099-NEC). Do I need to complete a nonresident state tax return for MD or PA? I know there are some reciprocity agreements that would allow me to only report W-2 salary or wages in VA and not file a nonresident return in MD, but I earned nonemployee compensation income, so not sure if that's covered under the reciprocity agreement.

Re: nonresident returns for 1099-NEC

AliciaP1 — Sat, 04 Feb 2023 23:02:56 GMT

No, as an independent contractor, you are self-employed report based on where you worked to earn the money. Since you earned all of it in your own home office, you will only need to report your income (on the appropriate business forms for your business structure) in Virginia.

Re: nonresident returns for 1099-NEC

sr41 — Sun, 05 Feb 2023 13:35:29 GMT

Thank you, that's very helpful!