That is absolutely correct. Kentucky has always taxed unemployment and Lacerte should be treating it that way until the law is changed. Had 3 returns today that rejected because of the critical diagnostic even though I made the correct change to include the unemployment to Kentucky. 

Lacerte will tell you they don’t change the program until they get instructions to do so, but Kentucky never changed their laws or instructions and they have made no intentions known that they would follow federal, yet Lacerte has changed the way they handle it. Go figure!