I double checked and all info from Form 1099R was entered correctly. Can't figure why is was carried to line 1 -Wages
No, this is not a new rule. It has been in effect for years.
Go to IRS Form 1040 Line 1 instructions on page 27 - https://www.irs.gov/pub/irs-pdf/i1040gi.pdf#page=27
Disability pensions shown on Form 1099-R if you haven’t reached the minimum retirement age set by your employer.
Was the code in box 7 a 3 - Disability? If so, were you under the age for retirement as established by your employer?
Yes it was and I am under the age for normal retirement retirement
Is this a new rule? I didn't qualify in previous years