My employer incorrectly with held taxes for wrong state (I was with same employer in OH before they transferred me to MI). I filed taxes for MI and OH (paid MI; received refund from OH). MI sent me penalty for underpayment of estimated taxes. Is there no reciprocity between MI & OH which will avoid estimated tax penalty? I had notified my MI address to then employer twice but apparently they did not change it.

My employer incorrectly with held taxes for wrong state (I was with same employer in OH before they transferred me to MI). I filed taxes for MI and OH (paid MI; received refund from OH). MI sent me penalty for underpayment of estimated taxes. Is there no reciprocity between MI & OH which will avoid estimated tax penalty? ====>yes there is between OH and MI .You need to contact MI state for sure. Reciprocity means that two states , OH and MI in your case, have agreed to exempt from taxation the earned income of a worker who lives in the other state. These reciprocal agreements make it possible for residents of one state to work across state lines and pay income taxes only to their states of residence; What that means is that you live in OH , your home state, and work in a reciprocal state, MI,your employer, in MI, needs to withhold and remit the income tax for your resident state, OH. Because of the reciprocal agreement, you pay taxes to only OH. It is your responsibility to notify your employer that you are a resident ofOH and that your employer should withhold OHtax from your pay and not the income tax of the reciprocal state of MI.

If your out-of-state employer did not withhold OH tax, you file and report your compensation as taxable income to OH and pay the tax. If your employer withheld the other state's income tax, MI, file for a refund of the tax from the other state. Under the reciprocal agreement, the other state cannot tax the compensation you earned there.
I had notified my MI address to then employer twice but apparently they did not change it.=>>As said previously.