Form W-2. Contains either an amount for box 11 Nonqualified plans or the checkbox for Wages earned while incarcerated carry to Schedule 1 is checked. These amounts are reported on the Schedule 1 and are not included in the wage amount reported on Form 1040. This return will be rejected and must be filed on paper. The IRS is reviewing the applicable business rule and will be addressing this issue in the future.Ref 58369

 

This is just a client's W2 with Box 11 filled in with non-qualified income. No issues for the last 4 years of reporting this client's nonqualified deferred compensation. Should be reported with wages and should not be carrying to schedule 1.