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Illinois
Employee Obligations (Which Returns YOU Must File)
Michigan has a reciprocity agreement with Illinois. If your only income from Illinois is wages, salary, tips, or commissions, file your Michigan return only — no Illinois return needed. Give your Illinois employer your reciprocity form (MI-W4) each year.
Employer Obligations (What Your Employer Must Withhold & Remit)
Reciprocity applies. If the employee provides the reciprocity form (MI-W4), withhold Michigan tax instead of Illinois tax. Must still register for Illinois unemployment insurance. Register for withholding and unemployment. Unemployment applies to the first $13,590 of wages.
Reciprocity Agreement — File Home State Only for Wages
Michigan has a reciprocity agreement with Illinois. For wage income, you only need to file your Michigan return. Give your employer the reciprocity form (MI-W4) each year to avoid Illinois withholding.
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This is general information, not tax or legal advice. Laws change frequently. Always consult a licensed CPA or tax attorney for your specific situation. All information researched as of March 21, 2026.