I terminated from my old employer in 2021, and received a payout of a portion of my deferred compensation. I have done the math from my paystubs and my non-qual def comp payout, and I can see that the employer did not include the payout in my Box 1 earnings.
I know that deferred comp is taxable, and I assume it should've been reported in box 1 (i.e. that the employer made an error). I paid SS & Medicare tax on the DC in prior years when as it was being deferred, so I believe it's not supposed to be included in box 3 or 5.
I'm trying to fix this in TurboTax, and I thought the interview question for "Nonqualifed pension plan not on my W-2" would be my solution. I clicked the box and entered the amount, but it didn't get added to my taxable income.
I guess it's not adding the income, just adding a label to the W-2 that a portion of the income is NQDC. How do I actually fix this so the income gets added to my taxable income?
