And if TurboTax is using line 5a from the Federal Schedule A....then TTX is following NE DOR's own published rules ....and TTX can't bypass them without the NE DOR's assent.
Someone in NE would have to challenge the NE DOR by giving them a call directly, or get a tax lawyer involved before TTX could change their treatment...and even then, only after the NE DOR agrees that they made a mistake and makes the change in their tax forms.
(of course, major mistakes on state forms.....at the state source, is not unheard of...but NE had the same instructions last year, and they haven't changed/corrected it yet)
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
