If 2 different employers withheld tier 1 RRTA tax

Forum|Forum|4 years ago
January 26, 2022
2 replies
35 views

The excess is not showing up automatically so I am trying to figure out where in the credits/deductions I enter this number in to show up on schedule 3 line 11.

TurboTax Premier Online

Best answer by RaifH

If TurboTax calculates that the amount of RRTA Tier 1 tax withheld should have been $0, you may need to enter the amount of Railroad Retirement Compensation in Box 14 in addition to the amount of RRTA Tier 1 taxes withheld. That is how TurboTax calculates how much the Tier 1 withholding should be. The amount of Railroad Retirement Compensation in Box 14 should match the Wages reported in Box 1.

JamesG1

Level 15

In TurboTax Premier I was able to successfully enter such a transaction.

After you entered the W-2 that put you into an excess status, did the software ask you to confirm the numbers on the W-2 at the screen Let's review the amounts in boxes......?

The screen says It looks like you're due a refund from your employer.

Did you see either of these screens?

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brittanylippardAuthor

Level 2

Thank you!

Yes, I do see the message that the employer should refund and send a corrected W2. However when we contacted the employer, the representative told us that isn't correct and our will not provide the refund or a corrected W2.

We are married filing jointly and I am wondering if this is the issue on turbotax.

The IRS page https://www.irs.gov/taxtopics/tc608 states at the end that "If you're filing a joint return, you and your spouse must figure any excess Social Security tax or Tier 1 RRTA tax separately." This is very vague and I don't know what "figuring" means.

RaifHAnswer

Level 10

Ali04

Level 2

Hello! I have the same problem and I was trying to follow the steps you mentioned above. Did you add the Railroad compensation to only the second W2 or did you have to add it to both? I tried to add it to the second W2 only, but nothing changed. It still gave me the warning that my employer must provide a refund (which they won’t do). How did you finally get it to work?

AnnetteB6

Level 15

If your situation is for two railroad employers withholding tier 1 RRTA tax, then you will need to add the information for Railroad Compensation in box 14 of both W-2s.

@Ali04

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Ali04

Level 2

Thank you. I just tried this and at first a got a screen that said I was due a refund… but then the next screen again said I had to get it from my employer. How do I get this to work so the credit is included in my return. My employer is a CPEO and advised I have to get it through my return.