Your W-2 is reporting a distribution to you from an unqualified plan, and not actual wages paid to you. This should be reflected in Box 1 and Box 11 of your Form W-2.
The prompts in TurboTax are asking if the box 11 amount is a distribution, answer yes here.
This box, 11, reports any amounts that were distributed to you from your employer's non-qualified deferred compensation plan or non-government Section 457 pension plan. The amount in Box 11 is already included as taxable wages in Box 1.
So it would be fine, per the above, to leave Box 11 blank when entering your Form W-2.
It should not affect your taxes due or refund due, it is more about getting it on the correct line. When you make withdrawals or begin taking regular payments from the annuity, that money will be taxed as ordinary income.
As always, keep all documents with your tax records.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
