MI has a reciprocal agreement, on wages, with IN. No IN state taxes are
withheld or due and you do not need to file an IN return. But your home state
will tax you on your IN income.
If IN state
taxes are mistakenly withheld, you have to file an IN return to get a refund. You should ask
your employer to stop withholding so you don't have to file an IN return every year.
However the reciprocity
agreement does not apply to local 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 withholding (box19 on your W-2), unless there was an error in the amount.
For how to go about claiming a credit on your MI return, see https://ttlc.intuit.com/questions/3418266-i-live-in-michigan-and-work-in-indiana-i-m-being-charged-e...
