The so-called update makes no sense. It first had me add back my wife's W-2 which had already been entered and then effectively doubled her income. After deleting this obvious error, the federal tax appears to be correct after exempting the first $10,200 in unemployment compensation (which I guess was done automatically by Turbotax?) However, it also reduced my North Carolina tax liability which doesn't make sense since North Carolina taxes UI benefits and I've heard nothing about them exempting the first $10,200.
So why did the state tax liability reduce as well? I'm using TurboTax online.
