Your question: "Did either of you make maoney in any other states?"; I did physical work in my home state, but invoiced the payee in another state. So is the answer yes?

What does a 1099R have to do with your question?  Did you mean you got a 1099Misc ?

If you did not physically work in another state or have income sourced from another state, your answer is NO.

The income on a Form 1099-R is not income sourced from another state.