Hi, could you re-confirm this answer for a similar issue with the 2025 1040 form?
In 2025, I received a vacation payout that was deferred from 2023 until my voluntary termination in 2025. Federal taxes were withheld in 2025, and the payout amount is included in both Box 1 and Box 11 of my 2025 W-2. When the vacation time was originally valued in 2023, my employer withheld FICA taxes. The 2025 payment was not "additional income," nor was it a pension payment or an annuity payment.
I haven't filed my 2025 tax return yet but think the payment amount should remain in 1040 line 1a and that Schedule 1/line 8t do not apply to my situation. Does that sound correct? Neither answer option in the TurboTax Q&A for Box 11 ("Did you take money out of your non-qualified pension plan?" "Yes, I took this money out of my nonqualified or Sec 457 plan." "No, this is money I contributed to my nonqualified or Sec 457 plan.") fits my situation.
It would be helpful to have another "No" answer option, or a different question, such as, "Did you receive a pension or annuity from a nonqualified deferred compensation plan or a nongovernmental section 457 plan that was reported in box 1 of Form W-2?"
