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The credit for taxes paid to another state is automatically calculated in your account when you add a Nonresident return to your already created Resident Michigan return if you pay taxes to both Michigan and another state. If you qualify for the reciprocal agreement, you will need to remove the automatic calculation.
Michigan has reciprocal agreements with Illinois, Indiana, Kentucky, Minnesota, Ohio, and Wisconsin. If any of these states withheld taxes for a Michigan full-year resident, youll need to file a nonresident return with that state indicating the full-year residency in Michigan.
The state of Michigan has reciprocal agreements with the following states: Illinois. Indiana. Kentucky. Minnesota. Ohio. Wisconsin.
StateStates in Agreement Pennsylvania Indiana, Maryland, New Jersey, Ohio, Virginia, West Virginia Virginia Kentucky, Maryland, District of Columbia, Pennsylvania, West Virginia West Virginia Kentucky, Maryland, Ohio, Pennsylvania, Virginia Wisconsin Illinois, Indiana, Kentucky, Michigan13 more rows
Residents of reciprocal states (Illinois, Indiana, Kentucky, Minnesota, Ohio, and Wisconsin) working in Michigan, do not have to pay Michigan tax on their salaries or wages earned in Michigan.
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The state of Michigan signed a tax agreement that benefits many members whose principal residence is within specific agreement areas which is often on or near tribal reservations. Tribal members living and registered (with the Tribal Tax Office) in the Tax Agreement Area are exempt from Michigan income taxes.
If you are a Michigan resident earning salaries, wages and/or commissions in states having a reciprocal agreement with Michigan (Illinois, Indiana, Kentucky, Minnesota, Ohio, and Wisconsin) you are not required to pay tax to these states.

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