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Retirement tax questions
First, I'd like to thank you for your help as I was having the same exact issue in TurboTax.
The trick of adding Railroad Compensation with the $ amount from box 1 worked. However, it still tells me I overpaid by a lesser amount now.
Interestingly, though, I pay into a 457 plan, which is tax deferred. When I add my 457 contributions from box 12a to my box 1 wages amount and then multiply that total by 6.2% it does equal what was withheld for my RRT1. I don't know if you had the same scenario or not. But, this has me wondering if my RRT1 withholding was done correctly after all, and did TurboTax just mess it up?
Does anyone know if the RRT1 and RRT2 withholdings are supposed to be based on 6.2% and 4.9% of box 1 earnings only, or are they supposed to be based on the sum of box 1 and any qualified tax deferred retirement plan contributions?
I know that 457 contributions are deferred from Federal income tax, but I'm not sure about RRT1 and RRT2.