TurboTax is behaving correctly. The amount in box 11 is to appear on Schedule 1 line 8t. Only the amount from box 1 minus the amount in box 11 is to be included on Form 1040 line 1. Prior to 2022 the entire amount was to be included on Form 1040 line 1, but beginning in 2022 the IRS changed the way distributions from nonqualified deferred compensation plans are to be reported.
