W-2 Received... Box 11 with 5 digits value, box 1 blank. Checking with employer... what to do?

[Peckety]

EDIT I THINK I'VE RESOLVED

The actual payment came out of Fidelity, who also issued me a W-2. So, if I enter the employer W-2 with a value of $1 and the Fidelity W-2 with the correct entries, I get the correct net in my 1040. 

Line 1A is lower by $18k and line 8 is higher by $18k, but they net to the correct amount. I can easily document any challenge from the IRS and now have all W-2's paper'ed in. 

I left an employer in Dec 2024.

3 months after I left, they cashed out a non-qualified plan and sent me the distributions. I did not have any actual worked 'wages' in 2025.

I have a W2 which has about $18k in box 11, and a completely blank box 1.

When I enter that as is into Turbo Tax and check my 1040, it enters -$18k on line 1a and +18k on line 8, with a total net income of $0.

This doesn't seem right to me, as presumably the non-qualified pension benefit should be taxed. 

If I enter the full amount in the W-2 for box 1, it seems to look correct. 

I'm going to proceed with copying the full amount from Box 11 into Box 1 for now, even though it is not on the W-2, because it seems like that generates the correct 1040..... is there any scenario in which Box 11 would not be fully taxable though?

[DianeW777]

No, do not enter the full amount in Box 1. A W-2 with only Box 11 completed usually represents a distribution from a nonqualified deferred compensation plan (NQDC) or a nongovernmental 457(b) plan, often appearing as 'DFC' for nonqualified plans. This amount is typically taxable and should be reported as additional income on Schedule 1 (Form 1040), Line 8t.

1. Enter your W-2 and you may need to enter zero or $1 in box 1. 
2. As you continue through the screens you will reach a screen 'Did you take money out of your nonqualified pension plan?'
3. Select 'Yes, I took this money out of my nonqualified or Section 457 plan.'; OR 
4. Select 'No, this is money I contributed to my nonqualified or Section 457 plan.' whichever applies to you.
5. If you answer 'Yes' then select your state and enter the amount.

Once this is completed the income will either be on the line noted above or it will be tax free if you selected 'No'.

@Peckety