I am a resident of MI, but earned $122 from an OH firm. I paid MI $500. TurboTax shows me as being due a $498 refund from OH.

[pk · Accepted solution]

welll, MI and OH being reciprocal states, your resident state ( MI ) gets to tax you on all earned income no matter which of the two states  you eanred that income in.  If you  earned  and was witheld in OH then  you have to file OH return and get that withholding back-- but MI will tax you on your world income ( MI and OH )  Is this the situation or am I missing something in your post?? 

[Mich410]

I didn't pay $500 to OH. it was paid to MI when I filed for an extension. TurboTax appears to think that the $500 was paid to OH, calculated an OH tax of $2 based on the $122 in OH taxable income and thinks I should receive a refund from OH. This also opens the question, has TurboTax correctly calculated my MI taxes.