So after doing some research and reading the IRS Form 1040 and Schedule 1 instructions thoroughly, I corrected the problem in my return and re-submitted it successfully. My non-qualified pension income is NOT a deferred compensation pension plan, rather it's a non-qualified salary continuation plan. So I went to Forms view in TT and zeroed-out the amount shown in the second box in the Line 10 area under where it says: "Distributions from sect. 457 and non-qualified plans". This amount is transferred to line 8t on Schedule 1 which is intended to report Non-Qualified Deferred Compensation Plan payments (which mine is not).
In prior years, line 8t did not exist on Schedule 1. So I think there is a Step-by-Step problem with TT related to non-qualified pension income. IRS instructions for Form 1040 Line 1 say: "If you received a pension or annuity from a non-qualified deferred compensation plan or a nongovernmental section 457(b) plan and it was reported in box 1 of Form W-2, do not include this amount on Form 1040, line 1a. This amount is reported on Schedule 1, line 8t".
This is NEW in 2022, obviously, if someone does have income from a NQDC pension plan, there may be continuing issues in TT (because income is not supposed to be reported on Line 1 of Form 1040, but rather on Line 8t of Schedule 1 which then flows to Form 1040 Line 8 -- and results in the Federal error FW2-001-02), however because my NQ plan is not a deferred compensation plan I was able to correct my issue and successfully e-file.
