Michigan will give you credit for that on the state
return, but you have to attach a copy of the city return. So, even though the Ohio city (Toledo) does not require you to file a return, you have
to file one to get the MI credit, even though there will be no tax due or
refunded from the Ohio
city.
So, yes. You have to file taxes with the city of Toledo, if you want to claim the credit on your MI return. Otherwise, you do not need to file a Toledo return.
Yes, you would add the taxes taken out, by Toledo, as a MI state tax credit, in Turbo tax
