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 properly calculating excess Tier 1 Tax and applying the credit to the 1040 form:

 

For both W-2s, Make sure you enter RRT1, RRT2 and MED in the same order in box 14 on TurboTax.  E.g. in TurboTax Box 14, make line one for RRT1, Line 2 RRT2 and Line 3 MED , THEN add any other box 14 items in TurboTax for all your employer W-2s.

 

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 W-2 BOX 1 WAGES

From the dropdown menu select Railroad compensation . 

 

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 an IRS 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.