W2 non qualified plan pension income reported differently in 2022 versus 2021 on my 1040

Forum|Forum|3 years ago
March 2, 2023
2 replies
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My 2022 W2 reports Box 1 income with the same income number in box 11 nonqualified plans. The W2 was the same in 2021. The 2022 income is reported on Schedule 1 Line 8t and Line 8 on the 1040. The same income for 2021 was reported on line 1 on the 1040. Did a rule change in 2022 that moved nonqualified plans on a W2 from line 1 to line 8 i the 1040 for 2022?

Best answer by mglauner

The, the IRS did change reporting requirements for 2022.

It is being correctly reported on Schedule 1, Line 8t and Form 1040, Line 8.

Here's more info on Non-Qualified Pension Reporting.

mglaunerAnswer

The, the IRS did change reporting requirements for 2022.

It is being correctly reported on Schedule 1, Line 8t and Form 1040, Line 8.

Here's more info on Non-Qualified Pension Reporting.

BuilderAuthor

Many thanks for the quick reply. As a follow up, if the W2 shows income in Box 1 but, the 1040 shows zero on Line 1, will the electronic fed filing get rejected due to the significant disparity. It looks weird !! Haven't tried filing yet but, other posters seem to suggest that it will get rejected.

JohnW152

It does look weird, but the e-file system won't reject your return on the basis of this.

This is a change in reporting required by the IRS for tax year 2022.

Pension or annuity income from a nonqualified deferred compensation plan or nongovernmental section 457 plan is now reported on Schedule 1, line 8t.

When a taxpayer receives a pension or annuity from one of these plans, and it's been reported in box 1 of Form W-2, the amount should no longer be included on line 1a of Form 1040.

Brenda1956

I see in the IRS instructions for Form 1040 that nonqualified deferred compensation pension and annuity income is to be reported on Schedule 1, line 8t. I have two W-2 forms with such income, and I entered them both into TurboTax as separate W-2s. One has a certain (same) amount in both Box 1 and Box 11 (Nonqualified plans). The other is from a different payer and has a larger (same) amount in both Box 1 and Box 11. However, for some reason TurboTax is reporting the income from the first W-2 on Schedule 1, line 8t, while the income from the second W-2 is being reported on Form 1040 line 1a. Is this a bug in TurboTax? What should I do?

LindaS5247

You are stating that both W-2's are coded exactly the same, but they just have different amounts and they are from different payers?

Nonqualified deferred pension and annuity income should be reported on Schedule 1 as "Other Income" on line 8t, and flow through to your Form 1040 onto line 8.

You can try deleting and reentering your Forms W-2. This may fix the issue. Also, after you delete them clear your cache and cookies. Go out of the program and go back in and add the Forms W-2 again.

Both line 1a and Line 8 of Form 1040, are taxed the same so it will not have any affect on your refund/amount due. As long as you have entered your Forms W-2 exactly as they are shown, you should have no issues. Keep all of your documents with your 2022 tax return information.

If this does not help please feel free to come back to TurboTax Community additional details or questions or click here for information on Turbo Tax Support. You can connect with a Live TurboTax Agent and share your screen.

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prabhudevprasad

Hello, Reporting of non qualified 457b distribution continues to be a problem. Fidelity issues me a W2 for the 457b distributions each year. They include this amount in Box1 (wages and tips), Box 11(Non qualified plans) and Box 16(state wages). When I put in all this information in TurboTax as a second W2, it doubled the amount in Line 8 of 1040 and also in Schedule X of Massachusetts return. This is obviously increasing the taxable amount. I tried deleting the Box 1 amount and including only Box11, but it did the same thing. Please let me know how to correct this. Is TurboTax working on any fix for this ? Thanks