Enter your Railroad Retirement Tier 1 amounts in box 14 of the W-2. Do not enter it box 4 for Social Security withholdings. In box 14, enter the description, amount, and select the category drop down then scroll to Railroad Retirement Tier 1. Additionally, you will need to enter in box 14 the Railroad Retirement compensation amount from box 1 of the W2 so the overpayment is not reported. Select "Railroad Retirement Compensation" from the box 14 category.
Click here for more information on entering Railroad Retirement information in TurboTax
Your Tier 1 taxes should 7.65% of your compensation, The maximum wages Social Security tax portion (6.2%) is 137,700. There is no maximum on the Medicare portion (1.45%). The Tier II tax is 4.9% with maximum wage amount of 102,300. You might be able to back into the amount of your taxable compensation by using the Tier I percentages. From there you can look at reported wages on your W-2 and box 12 and box 14 come to a total that will equal the calculated amount. The only variable would be if your compensation is over 137,700. Otherwise you can divide your Tier I taxes by 7.65% to get to your taxable compensation amount then go from there.
