Federal Exempt Interest taxable in NC not adding back correctly - 2020 1099-DIV

Hello,

 

Problem: 2020 federal tax exempt interest is reporting on NC D-400 return line 9 Deductions from Federal AGI but it should appear on line 7 Additions to Federal AGI instead.

 

The interest appear in box 11 Exempt interest dividends on my Vanguard 1099-DIV. No state is listed on this 1099-DIV.

 

This income is federal tax exempt but taxable in NC. It is not state tax exempt.

 

In some prior years Turbotax online had a question that handled this correctly. This year the online interview seem much simpler.

 

I have tried all permutations in the federal income area and nothing places the amount on the correct NC D-400 line.

 

So far I have spoken with two Turbotax live support agents and neither one could solve this.

 

I have gone as far as paying for filing and have downloaded a PDF of my returns, but I have *not* filed yet.

 

Has anyone solved this problem? How?