You should (most likely) NOT be preparing an Indiana Tax return. MI & IN have a reciprocal agreement on wages. No IN state taxes are withheld or due and you do not normally need to file am IN return. But MI will tax you on your other state income.
Only if IN state taxes are mistakenly withheld, you then have to file a return, for the other state, to get a refund. MI will not give you a credit.
In the personal info section, when it asks if you made money in another state, answer NO, per the reciprocal state instructions, on that page. This will prevent TurboTax from thinking you need to file an IN return.
However the reciprocity agreement does not apply to local county taxes. You can not get those refunded. As to the question, why do i still owe indiana more money: Once you start an IN return, TT will recalculate the amount of county tax due. Box 19 of your W-2 is frequently wrong, due to the complexity of the IN county tax.