Indiana and Michigan have a reciprocal agreement. You only pay tax to the state in which you live. In your case, you pay Michigan Tax.
If your employer withheld Indiana tax, you will need to file an Indiana return to get that money back. Also, give the employer a WH-47 so that they withhold the proper tax. In your case, you need to pay Michigan Tax on your Indiana income.
If you work in a city that taxes, you DO need to pay the city or county tax.
CLICK
HERE for information about reciprocal states
