W2 with non-qualified earnings

thomas402 · ‎February 01, 2026

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?

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.

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View solution in original post

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.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

thomas402

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

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W2 with non-qualified earnings