"Indiana sent a letter stating that $335.00 was due to Porter County Tax. I believe the Letter from Indiana Dept. of Revenue is incorrect and that she should receive the Porter County Tax as a refund"
No. The reciprocal agreement does not apply to local taxes, county or city. Indiana resident who work in a MI city with an income tax have the same situation.
But, the good news is: MI will give you a credit for the county tax you pay to IN, on the MI state return.
