Thanks for the response. That approach makes sense to get the totals correct on Line 1a and Line 8 on the 1040.
Before you had responded, I found another way to accomplish the same thing which essentially bypasses the TurboTax screen edit where it asks whether money was taken out. I answered Yes and put in the total amount for the State just to get past the screen. Then, I went to Forms view and edited the box 11 section on the W2. On the form, I did this...
- For the "Nonqualified plans" box I left that amount alone. It is the total box 11 amount on the W2 that I entered on the TurboTax screen where I entered all the W2 data.
- Right underneath that is the "Distributions from sect. 457 and nonqualified plans (Important see Help)" box. I changed that value to the actual distribution amount I received (which is captured in box 1 on W2).
- Right underneath that is the section for what states the distribution was allocated. I changed the State amount from the box 11 total to the actual distribution amount (which is the same value as bullet 2 above since I just had one state).
Changing those values on the W2 form seems to have it then flow through all the worksheets and eventually to the 1040 automatically (as one would expect). To double check, I checked Line 1a and 8 on the 1040 and they are correct. Line 1a contains everything less the distribution amount. And Line 8 contains the distribution amount. And Line 9 correctly adds back up to the correct total of income.
