Looking for information about living in Indiana and Michigan.

[helloworld100]

I live in Michigan but work in Indiana. As a result, I spend five days a week in Indiana and the weekends with my family in Michigan. Where should I file my taxes, and what is the best option for me?

[Hal_Al]

Any abode you stay in, in IN, while you work there is only a temporary residence or "2nd home".  You are not considered to be  an IN resident at any time.  You are  a full year MI resident. As such, the reciprocity agreement between MI and IN applies.  You do not pay any IN state tax, nor should your employer withhold any state tax, nor do you file an IN state return (unless you need to claim a refund of mistakenly withheld IN state tax). 

The reciprocity agreement does not apply to county income tax. Your employer will withhold IN county tax, but you do not file any county return (in IN, county income tax is part of the state return). Michigan will give you a credit, on the MI state return, for any IN county tax withheld from your pay. 

[TomD8]

You should file Indiana Form WH-47 with your employer.  You can download the form here:

https://www.in.gov/dor/tax-forms/withholding-tax-forms/