I have earned income in Illinois while a resident of Michigan. The two states have reciprocity. Why is turbotax telling me I owe state taxes in both states?

[DavidS127]

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.

[DavidS127]

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.