Need Help on Entering Deferred Salary W2

[lpoleshuck]

I have a W2 for deferred salary. The amount in box 1 is the same as box 11, non-qualified plans.  After entering the data, TurboTax asks "Did you take money out of your nonqualified pension plan?"  I answer "Yes, I took this money out of my nonqualified or Section 457 plan." Other choice being no I contributed to a plan.  Then TurboTax requires me to select a state and fill in the Amount box.  I don't understand why I need to do this.   My deferred salary is not a 457 plan.  The income was earned and paid in the same state I still live in, so I'm OK selecting New York, but what about the amount.   Should that be the same as in boxes 1 and 11?   If so, what is  the purpose of this question and is it relevant for a non-457 plan?

[charlieb60]

I have the same question. My income was earned in Washington state, but I now live in Virginia... which state should I enter? And do I enter 100% of the compensation? 

[lpoleshuck]

@charlieb60 , I am glad to know I'm not the only one puzzled by this. Not seeing any answer or logic to the TurboTax question I went ahead and completed my return, answering with my home state and the full box 1/11 amount.  I reviewed the generated state and federal tax forms and couldn't see how the answer to this question influenced anything.  Not that I'm expert enough to know! Your situation, involving two states, is a bit more complicated, however, so this doesn't really help you.  But I thought you'd be interested.

[AmyC]

Since WA does not have a state income tax, the deferred salary will not be taxed by them, only your resident state. Enter VA, the taxable amount should carry to your state. Check your tax forms to make certain only the taxable portion is showing as additional income on your VA return.

To see your forms:

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@charlieb60