I work in Illinois but am a full time Michigan resident. When I fill out the MI tax return, I am paying the full tax rate on my income in Michigan. I have taxes withheld by my employer in Illinois and Michigan. When I fill out the Illinois non-resident tax form, it also requires that I pay the full state tax amount on the same income. Since Illinois and Michigan have a reciprocal tax agreement, I thought I would only pay income tax in Michigan. Why am I double taxed on this income?
