You might want to submit this as another question to get a better response. The software brings that information from your Federal return, that's why you need to do the returns in the following order:
1. FEDERAL
2. WORKPLACE RECIPROCAL NON-RESIDENT STATE (in your case, Indiana)
3. RECIPROCAL RESIDENT STATE (in your case, Michigan)
You will pay local tax on your income, but your income may be adjusted slightly with allowable adjustment. If you are the only one that worked in Indiana, only 2A should have entries.
Again, if you ask this as a new question, you might get a better response.
