The reciprocity agreement does not apply to local city or county taxes. You are not required to file a local city/county return, but you are also not entitled to a refund of the city/county 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...
MI residents and IN county tax https://ttlc.intuit.com/questions/3418266-i-live-in-michigan-and-work-in-indiana-i-m-being-charged-e... https://ttlc.intuit.com/community/state-taxes/discussion/i-live-in-michigan-work-in-indiana-i-het-mi...
