AmyC
Expert Alumni

Get your taxes done using TurboTax

Correct, the income is KS exempt. Tax Withholding and Railroad Retirement Payments | RRB.Gov

 

There is only a workaround available for your situation. Here's how:

  1. Return to the state.
  2. Edit, continue through until you see
  3. Here's the income the KS handles differently
  4. Scroll to the bottom: Income that KS doesn't tax
  5. Start
  6. The closest match would be KPERS lump sum distribution. 
  7. Continue
  8. Here's the income that KS handles differently
  9. Income that KS doesn't tax, you see the amount you entered
  10. Done with Income

Now you are thinking, I don't want to enter this is as KPERS or any of those. Well, the goal is to get it taken off of your income as it should be. Your tax liability will be correct. If you get a letter from the state someday asking, simply reply that it was actually Railroad Unemployment which is non-taxable. The state will be happy. Usually, the state will realize the deduction matches that income amount.

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