W-2 Non-Qualified amount not populating to Wages

[ronvttax]

Last year no problem it populated into Wages. Now 2022 TD Deluxe shows the 1,100 from Box 1 and 11 in the income summary but does not populated like it did last year in the Form1040 box for wages but rather in the Other Income. No codes in 12 last year or this year. 

  Seems like TT either has a problem or IRS is requiring something in box 12 but none of the choices seem to apply. This is money from a SERP or what they now call   employer...Equalization Plan.

[dmertz · Accepted solution]

The IRS now requires these to appear on Schedule 1 line 8t, a new line for 2022.  2022 TurboTax properly puts them there.

[ronvttax]

dmertz....That was very helpful and I have suggested to the former employer that they send something along with the W-2 if they are going to continue to provide W-2s.

I do have a follow up though. Since I moved during the year, what do I do for the state taxes paid to MI and IL that appear on W-2 for that non qualified plan?

[dmertz]

This change to how this sort of income must be reported on your tax return is mentioned in the What's New section in the 2022 Form 1040 Instructions.

Distributions are taxable in the state where you resided when the distribution was received.  You'll need to file part-year returns for both states.

[ronvttax]

Thank you....sorry didn't read that. I note on MI state taxes Sch 1 line 14 should be noted that it asks for Taxable SS benefits from line 10 MI-1040...works if a full year resident but if form NR Part Year is applicable it does as line 10 on 1040 is for full year. Bottom line Sch 1 line 14 should come from NR line 8 if a part year resident.  No need to reply....

[ronvttax]

e-filed my federal tax tonight and it was rejected as : Sum of all W-2s must not be greater than sum of [WagesSalaries and Tips Amt in the return and (sum of all Sch C -Form 1040.

This issue will be resolved but currently no estimated date set. You have the choice to wait a few weeks and try resubmitting or file a paper return.

Message will be updated when resolution date is identified.

Thought I'd share. I am assuming that the IRS systems have not been updated to deal with what's new this year. Just a FYI 

[ronvttax]

Sorry for got to mention the rejection includes

This return can not be electronically filed due to a processing error related to Other Income items listed on 1040 Sch 1 line 8

[pfbegin]

I'm running into the same problem. I did figure out that if I answer the TT question that asks if it's a distribution or a contribution wrongly (i.e. I check the box that says it's a contribution) then the income does show up on Line 1a of the 1040.  Looks like your post is a month old - have you heard of anyone addressing this (either TT or IRS?)

[ronvttax]

I did my taxes early and all updates might not have been done. I say that because a friend I talked to had the same situation and it populated the w-2 to the 1a like mine had in past years. I researched for a while and saw what the Turbotax community said and tried that but it didn't work. So after updating my turbotax I deleted the w-2 entry info and then saved again. Went back in and repopulated the w-2 and for some reason it did go where it was supposed to then. I did not indicate it as a contribution but rather a distribution. 

  Hope yours might do the same.

[pfbegin]

I'm all set now. I filed yesterday and IRS accepted my return. thanks!

[erirolfe]

How do you mean “where it was supposed to”?

[ronvttax]

When I said it went where it was supposed to I was referring to the w-2 information showed up previously in an "other income" category rather than in the "wages" category which a w-2 should be. Other income messed things up and in prior years that money had appropriately been labeled as Wages and that is not where it was originally populating when I first recorded the w-2 info. Hope this helps.