DavidS127
Expert Alumni

State tax filing

The reciprocity agreement between Michigan and Illinois is for "compensation for services" only, e.g., for W-2 wages.  If you had income other than W-2 wages, it is taxable in Illinois.  But, you will receive a credit in Michigan for Illinois taxes paid on the same dollar of income.

 

If you only had W-2 wages in Illinois, and didn't pay withholding to Illinois, you don't need to file an Illinois tax return.  If Illinois withheld taxes on your W-2 income earned while a resident of Michigan, you'll need to file an Illinois nonresident return to get a refund.

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