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Level 2
February 1, 2026
Solved

W2 with non-qualified earnings

  • February 1, 2026
  • 2 replies
  • 53 views

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?

    Best answer by DaveF1006

    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.

    2 replies

    DaveF1006
    DaveF1006Answer
    Level 15
    February 2, 2026

    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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    thomas402Author
    Level 2
    February 2, 2026

    This finally solved the issue for me. Thanks so much. Answering the follow-on question appears to be the secret.