Yes this is correct due to the fact that IL and MI have a reciprocal agreement related to wages. This
allows nonresidents to not have state withholding taxes taken out for
wages earned in a reciprocal state.
So even though you lived in MI and worked in IL after April 2016, because of this state reciprocal agreement, you will only need to file a part-year MI return to report your IL-source wages earned while a part-year resident of MI. No IL nonresident state income tax return is required. (That is why your employer only took out MI withholdings after you moved to MI.)
So you will have to file both a part-year IL and a part-year MI resident state income tax return. You will divide
your wages based on the time in each state and report these amounts
separately on your part-year resident state income tax returns of each
state.
Check
below for more information about filing a part-year state tax return (Please
select "see entire answer" to see full answer)
https://ttlc.intuit.com/replies/3302008
