Yes, since the tax withholding is Illinois (IL) and there is a reciprocal agreement with Michigan, all state tax withheld for IL should be refunded. Make sure to do the nonresident return first, then the resident return.
Review your entries again and make sure the income taxed to IL is zero. You could put zero wages in the W2 for IL and this may eliminate the income for that state. It's all right to make this change if necessary to accomplish and accurate return.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
