You don't get out of paying income tax to your home state, by working in another state.
The general rule is: your report ALL your income on your home state return, even the income earned out of state. You file a non-resident state return for the state you worked in and pay tax to that state. Your home state will give you a credit, or partial credit, for what you paid the non-resident state.
In the case of reciprocal states (IN & MI), it works a little differently.
IN has a reciprocal agreement, on wages, with some neighboring states. No MI state taxes are withheld or due and you do not normally need to file a MI return. But IN will tax you on your MI income.
If MI taxes are mistakenly withheld, you then have to file a MI return to get a refund. IN will not give you a credit. You should ask your employer to stop withholding so you don't have to file a MI return every year.
However the reciprocity agreement does not apply to MI city taxes. You are not required to file a local city return, but you are also not entitled to a refund of the city withholding (box19 on your W-2), unless there was an error in the amount.
Most IN counties (but not the state) allow a credit, or partial credit for tax paid to a MI city. That will come up in the IN state interview. (For details, see:
https://ttlc.intuit.com/community/state-taxes/discussion/i-see-no-separate-question-for-school-taxes...
