Why do I owe Michigan taxes if I live out of state in Indiana but worked in Michigan it says on Michigan.gov that Indiana residents don’t have to pay?

[BillM223]

Yes, Indiana and Michigan have reciprocity for taxation.

Read this post by Daniel (a TurboTax employee) and see if you can do this in your return so that all your tax is paid to Indiana and not Michigan.

[Hal_Al]

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 a MI return.