IN and MI State Tax Reciprocity

[Kimber1968]

I am a full-year resident of Indiana. I worked in Michigan for three months in 2022. This employer took out ~ $780 in income tax for Michigan. Indiana says I owe approximately the same amount. I believe the two states are considered to be reciprocal. I paid the $45 to Turbotax to file the nonresident MI taxes but am only receiving a $72 credit in Indiana leaving me to owe Indiana close to $700! This does not seem accurate? Please help!

[MarilynG1]

Prepare your Non-Resident State Return for Michigan first.  You will  be reporting $0 Income in Michigan, and the tax you paid there. You should get a refund from Michigan. 

Your Indiana Resident Return reports all of your income, so you may owe tax there, but get a refund from Michigan. 

Here's more detailed info on How to File a Non-Resident State Return and Reciprocal States. 

@Kimber1968 

Edited 4/17/2023 | 9:56 am

[Kimber1968]

Thank you for your help! Should I expect to get credit for the full amount taken out? $783 was taken but it's telling me I am only receiving credit for $595? I don't fully understand how to answer the questions on the page 'Information about other State'.

[SteamTrain]

@Kimber1968 

You cannot take a credit for taxes paid to MI !!!

They are reciprocal tax states...meaning the income in MI is only taxable by IN.

Filing the proper forms with the MI employer would have resulted in no MI taxes paid.

BUT
See the help provided to you already on this other post of yours...which advises you correctly:

Reciprocal State Has Higher Tax Rate (intuit.com)