Reporting W2 Earnings Non-qualified Pension Plan

[COWBOYS FAN]

TurboTax 2022 is reporting my W2 non-qualified pension distribution as Other Income, line 8, on my 1040 instead of, line 1, Wages as in all previous years. The amount is the same in all years & all the reporting information is the same. Each year I have answered the Turbo Tax questions the same? 

[rjs]

The IRS changed the forms for 2022. TurboTax is reporting it correctly. The amount on Form 1040 line 8 comes from Schedule 1 line 8t, which is where the nonqualified pension distribution is now reported.

[COWBOYS FAN]

Thank you for the quick reply.

[dncasciari]

I used TT and had the same question.  TT is not cheap, you would think they would highlight up front and changes year-over-year that ongoing users would need to know instead of having to search for why reporting has changed.  I had to find it myself.  Come on TT... !!

[dmertz]

It pays to read the IRS instruction for the forms you will be filing, particularly Form 1040, even if you are using TurboTax to prepare your tax return.  The What's New section of the Instructions for Form 2022 Form 1040 addresses this change, among many others.  In general, having TurboTax mention all of the many changes from year to year would likely cause more confusion rather than less due to TurboTax's history of poor wording of text in many areas.

[ednamc125]

Turbo tax did place the non-qualified pension amount on the other line on my federal return and not on the wages line.  However, when carried over to my MA state return it was put in 2 places...on the wages line and the other line, so now it's being double counted.  I guess I'll just over ride the wages line on my state return to match the federal return.

[LindaS5247]

You can try deleting your State return and reentering it.  This has worked for similar issues.

Click here for instructions on how to delete your state return using TurboTax Online.

To view your State Return in TurboTax prior to e-filing:

• Select Tax Tools in the left menu (if you don't see this, select the menu icon in the upper-left corner).
• With the Tax Tools menu open, you can then:
• Select Print Center and then Print, Save, or Preview This Year's Return to preview your entire return, including all forms and worksheets (you may be asked to register or pay first).
• View only your 1040 form by selecting Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu.

Please click here for a  TurboTax Help link to watch a video to help walk you through 

[prabhudevprasad]

Hello, Reporting of non qualified 457b distribution continues to be a problem.  Fidelity issues me a W2 for the 457b distributions each year. They include this amount in Box1 (wages and tips), Box 11(Non qualified plans) and Box 16(state wages).  When I put in all this information in TurboTax as a second W2, it doubled the amount in Line 8 of 1040 and also in Schedule X of Massachusetts return. This is obviously increasing the taxable amount. I tried deleting the Box 1 amount and including only Box11, but it did the same thing.  Please let me know how to correct this. Is TurboTax working on any fix for this ?  Thanks

[KrisD15]

Enter the W-2 as it is reported.

If there is nothing in Boxes 2-10 (and there shouldn't be) enter zeros for those boxes. 

You will get to a screen asking if it was a distribution.

Select YES 

At this point a drop-down opens for you to enter the state involved with the distribution and the amount. 

Select the state and enter the amount 

This should eliminate double income on the 1040 and state return. 

[prabhudevprasad]

Thank you for your reply. I did exactly as you mentioned. 

This is the message I get when I enter ZERO in the drop-down menu for the state. 

Total state amounts must equal box 11

Add

[RobertB4444]

Box 16 should be just as it is on the form.  You need to enter zeroes in boxes 2 through 10.  No other boxes need zeroes in them.  You just need to trigger the system to recognize that it is a distribution.

@prabhudevprasad