Since Michigan and Indiana are "Reciprocal States", you are only required to pay State Taxes to Michigan and not Indiana,

[xmasbaby0]

You did not ask a question, and have not mentioned which state you live in and which state you work in.

If you live in Indiana and work in Michigan, make sure you have provided your employer with a form MI-W4

If you live in Michigan and work in Indiana, make sure you have provided your employer with a form WH-47

[rjs]

The reciprocal agreement applies only to W-2 income. If you work in a reciprocal state, you are only required to pay income tax to the state that you live in, on W-2 income earned in the reciprocal state. If you have any other type of income from another state, you would have to pay income tax to the state that is the source of the other income, whether or not it is a reciprocal state.

You have to pay tax to the state that you live in on all of your income, no matter where the income is from. If the same income is taxed by two states, one state will give you a credit for tax paid to the other state. Exactly how that works depends on the specific two states that are involved. The most common arrangement is that the state you live in will give you credit for part or all of the tax that you pay to the other state, but there are exceptions.

[Hal_Al]

The reciprocity agreement does not apply to local city or county taxes. You are not required to file a local city/county return, but you are also not entitled to a refund of the city/county withholding (box19 on your W-2), unless there was an error in the amount.

Most  IN counties (but not the state)  allow a credit, or partial credit for tax paid to a MI city. That will come up in the IN state interview. (For details, see:

https://ttlc.intuit.com/community/state-taxes/discussion/i-see-no-separate-question-for-school-taxes...

MI residents and IN county tax https://ttlc.intuit.com/questions/3418266-i-live-in-michigan-and-work-in-indiana-i-m-being-charged-e... https://ttlc.intuit.com/community/state-taxes/discussion/i-live-in-michigan-work-in-indiana-i-het-mi...

[Hal_Al]

@rjs  said

 If the same income is taxed by two states, one state will give you a credit for tax paid to the other state

Although that is how it usually works, it doesn't work that way in most reciprocal state situations. 

IN & MI have  a reciprocal agreement, on wages. No work state taxes are withheld or due and you do not need to file a work state  return. But your home state will tax you on your work state income.

If work state taxes are mistakenly withheld, you have to file a work state non resident return to get a refund. Your home state will not give you a credit for that (they will give you a credit for city or county tax paid - see separate reply on that subject).