For the state of Tennessee TurboTax 2020 is not properly showing tax exempt interest from credit unions in Schedule B on the INC 250. Instead the interest is showing in Schedule A on the INC 250. The proper selection on the 1099 INT Box 1 using TN1 special handling. This affecting the amount of tax that TurboTax is showing for the TN hall tax.
As tax from credit unions is not taxable in the state of TN, this is an error on the part of TurboTax. While TN does not have an income tax there is a Hall tax on dividends and interest exceeding 2,500.00.
