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Nonqualified Distributions and Wages

Level 1

I have a situation where a client has w-2 wages in Box 1 and a distribution amount in Box 11.  Box 11 is a larger amount than Box 1. The program is taking the wages less the distributions from nonqualified plans and it is listing a negative number on Line 1 form 1040 and the distributions on Line 8, Other Income. 

For example - wages are 10,000 and distributions are 30,000.  Line 1 is listing wages as $ -20,000 and the 30,000 is on Line 8.  When you net the two, the number is correct at $ 10,000 but I cannot get an answer of why it is showing like this in the program.

Any input is appreciated.

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3 Comments 3
Level 15

Per the 1040 instructions for 2022 the presentation is correct.

Level 1

Is it correct to show negative wages on Line 1 of 1040?

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Cindy F
Level 2


I have the same situation this year. The program has subtracted the larger amount in box 11 from the wages in box 1 resulting in a negative amount for wages.

I don't see any additional responses. Any ideas why this would happen?


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