Retirement tax questions

RAILROADERS:

 

Just spent an hour and a half on tax support:

 

If you have excess Tier 1 tax paid because of more than one railroad job, we had to do the following to resolve TurboTax problems with calculating excess Tier 1 Tax and applying the credit to the 1040:

 

For both W-2s, Make sure you enter RRT1, RRT2 and MED in the same order in box 14 on TurboTax (each box 14 line should be the same on each W-2 (Line one for RRT1, Line 2 RRT2 and Line 3 MED in TurboTax).

 

After you get all your box 14 items from each W-2 into the proper order on TurboTax, ADD A LINE UNDER THOSE and write "RAILROAD COMPENSATION".  In the $ amount box put your box 1 wages from your W-2 and then select Railroad compensation in the pull down menu.  TurboTax will then correctly add up how much Tier 1 tax is due, then tell you what you properly overpaid, and then put a schedule 3 in your tax forms and give you the proper $ credit to this year's taxes.  You would still have to file a form 843 for excess Tier 2 tax if you paid that.  

 

We never had to do this in TurboTax before.  I don't know if it is a glitch or a feature, but it is not well done on TurboTax's part.

 

Hope this helps.  It worked for us.