W2 with non-qualified earnings
If I have a W2 where Box 1 and 11 contain the same Nonqualified earnings, why does Turbotax sometimes put the amount in 1040 line 1A and sometimes in Schedule 1 line 8t?
If I have a W2 where Box 1 and 11 contain the same Nonqualified earnings, why does Turbotax sometimes put the amount in 1040 line 1A and sometimes in Schedule 1 line 8t?
It depends on the way you answered a follow-up question. The question is Did you take money out of your nonqualified pension plan, or did you contribute to it?"
If you report that you contributed to it, TurboTax will report this as standard wages and leave it in line 1A. If you report it as taking money out, then it is reported as Schedule 1, Line 8t (Other Income). This is the IRS preferred method of reporting this, even though the tax calculated is the same for both.
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