As a resident of Michigan, i was working in Illinois as a W2. My employer withheld NO Illinois state tax. Why was there no money withheld by my employer?

[dmccombwl]

Do i NOT file a IL tax return?

[CarolynM · Accepted solution]

No, you do not need to file a Illinois tax return. MI and IL have tax reciprocity so residents are not subject to double taxation.

You do owe Michigan on these wages.

For more information, follow these links: 

https://ttlc.intuit.com/questions/2895760-which-states-have-reciprocal-agreements

Intuit on Tax Reciprocity

http://www.michigan.gov/taxes/0,4676,7-238-75545_43715-154059--,00.html

[dmccombwl]

Thank you very much for the very fast response.  You have taken me from panic to understanding in record time!