I think you are a MI resident based on your saying you think you should pay MI. They are reciprocal states. If you work in IL, you should fill out IL-W-5-NR and give it to your employer to take out MI tax instead of IL tax. See Reciprocal Agreement for more information.
Since IL was taken, we need to correct the situation. Your resident state taxes all income but gives a credit for income taxed by another state. Please carefully follow these directions.
You will need to prepare the states in a special order. You may need to delete both states and begin again.
- First, prepare your non-resident return. This creates your tax liability for the non-resident state. How do I file a nonresident state return?
- THEN prepare your resident state return and it will generate a credit for your income already being taxed in the non-resident state.
- The credit will be the lower of the state tax liabilities on the same income. You may owe your resident state.
It isn't possible for the program to create a credit before it knows the liability. Your returns may be wrong if you do not prepare the states in this order.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
