I agree that ultimately it shouldn't matter because the bottom line tax is the same. But I'd rather avoid the unnecessary hassle of a flagging of the return if their computers attempt to match W-2 amount to line 1 amount if Turbotax is not handling it correctly. There should, however, be an answer, even though the IRS instructions on the back of the W-2 seem to be conflicting with the purpose of the new line 8t on Schedule 1, and are certainly not clear. Here's the email I got back at my request following my phone call with support, which the rep said was the guidance that all the reps have access to:
Dear TurboTax Customer,
Thank you for contacting TurboTax Support.
Here is the information we discussed during our call:
You should leave box 11 blank when entering the W2 form in TurboTax. Go back and edit the W2 and blank out box 11 and continue through the follow on questions to complete the W2 entry.
There was an amount in Box 11 on your W2 and that you answered in the follow on question in TurboTax after entering the W2 information that the amount was taken out of your non qualified plan. Essentially what happens then is the amount is taken from box 1 and put on line 8t on Schedule 1. It is still taxable in the same way no matter which line it is on.
According to the instructions for the W2, the amount in box 11 is only informational for the taxpayer. The Social Security Administration uses the number in box 11 to verify that they have properly applied the social security earnings test and paid the correct amount of benefits. The SSA already has their copy of your W2 for their purposes.
This box has no affect on your income taxes.
