Screen 11 Interest Income-- Federal Schedule B is correct, but the flow thru to Tennessee Hall tax "nontaxable" portion is understated. Why?
Entry made to Bank Interest income (taxable to Federal & TN). Box was marked "Taxable to TN" which in this case is correct.
Also an entry was made on the line "US Bonds (nontaxable to state)".
Entries were also made under "Adjustments to Federal Taxable Interest"--"Accrued interest" and also "Amortized Bond Premium". These both correctly offset the taxable interest income above shown on the Federal Schedule B.
The TN INC 250 "taxable" portion shows correctly the netting of the "taxable" Bank interest offset by the "Adjustments to Federal Taxable Interest".
However the TN "nontaxable" portion shows a duplication of the "Adjustments to Federal Taxable Interest" again as a "Negative" number. This is netted with the "US Bonds (nontaxable to state)" amount. This results in the TN "nontaxable" portion showing as under-reporting interest income.
Made contact 2/24/19 with Customer Support. They confirmed that this is a software "bug" that will be fixed in a future software update. The Case # xxxxxxxxx for this issue. They instructed to continue to "work-around" this issue until the "bug" is fixed.