tax filing for independent contractor based in one state doing work for a client in another state

[RonS1]

I am an independent contractor living and based in Wisconsin. I have done some work for a client in Iowa for which I will receive a 1099.  Most of that work was done from my Wisconsin office. Do I need to file an Iowa tax return?

[DoninGA]

If you never physically worked in Iowa for the client then there is no reason for you to file an Iowa state tax return.

[RonS1]

Thanks for the prompt response. While I did most of the work in my Wisconsin office and usually met via Zoom, I did meet face-to-face with the Iowa client a few times at his Iowa facility (getting the project started and some update meetings).  How does that affect your answer?  Ron

[DoninGA · Accepted solution]

@RonS1 Then you will need to determine what percentage of the amount received from the client was for the work performed in Iowa.  You will need to complete and file an Iowa nonresident tax return reporting that income on the Iowa return.

Complete the nonresident Iowa state tax return before completing your resident Wisconsin tax return.  Any taxes paid to the state of Iowa will be entered on the Wisconsin return as a tax credit.

[RonS1]

@DoninGA   Thanks for your prompt response and suggestions.  Makes sense to me.

[Hal_Al]

Nonresidents must file an Iowa income tax return (IA 1040) if their net income from Iowa sources is $1,000 or more.

Reference: https://tax.iowa.gov/im-not-iowa-resident