State Income Tax - Contractor

[RMI]

I am an independent contract doing consulting work. I am a resident of Nevada. My current project is with a New Mexico Company (Agreement and 1099 signed/issued by NM Company). However, all of my work is done in Arizona as the company has a big operation there. 

Do I file a New Mexico State Return only or do I need to file an Arizona return as well?

[rjs · Accepted solution]

You have to file an Arizona nonresident tax return and pay Arizona tax on the income that you earn for working in Arizona.

You do not have to file a New Mexico tax return if you do not do any work in New Mexico. The fact that the company that is paying you is located in New Mexico does not make it New Mexico income. You are working in Arizona, not in New Mexico.