Is there an error in the update made by Proseries?
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Yes. Proseries is incorrect for the state adjustment. if you don't make a manual adjustment on the state return the client will under report their state liability. Proseries needs to fix this ASAP a lot of state returns are going to be filed incorrectly.
A manual solution would be to subtract the UCE adjustment from true unemployment compensation and then use that amount as your state Unemployment Compensation adjustment.
They probably have glitch on the state of California, I will wait to e-file California state taxes, they might notice it and advice us or fix it.
A lot of preparers haven't noticed it, I noticed it because I had some returns printed already.
I do primarily Alabama and they already exclude Unemployment. I have to go to the Other income worksheet on the state and make a manual adjustment to add back the exclusion amount.
same thing is needed for California.
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