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It is telling me my husband's employer owes him a refund from his Railroad Retirement Tier 1 tax that was withheld

 
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7 Replies
DawnC
Employee Tax Expert

It is telling me my husband's employer owes him a refund from his Railroad Retirement Tier 1 tax that was withheld

Please review the W-2 entries in box 3-7 .  Are they blank?   and what do you have in Box 14?

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drake923
New Member

It is telling me my husband's employer owes him a refund from his Railroad Retirement Tier 1 tax that was withheld

I'm experiencing this same issue with my W2 for my local rail union.  I'm a salary employee.  Box 1 and two are filled.  Box 3-7 are left blank.

MarilynG1
Expert Alumni

It is telling me my husband's employer owes him a refund from his Railroad Retirement Tier 1 tax that was withheld

Click this link for info on How to Enter Form RRB-1099.

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Drake2985
New Member

It is telling me my husband's employer owes him a refund from his Railroad Retirement Tier 1 tax that was withheld

It’s my W2 for the wages I received, not benefits I was paid.

JohnB5677
Expert Alumni

It is telling me my husband's employer owes him a refund from his Railroad Retirement Tier 1 tax that was withheld

A "Railroad W2" is a standard IRS Form W-2 issued to an employee covered by the Railroad Retirement Act (RRTA). You will see the following differences from the usual W-2:

  • Boxes 3 through 7 are blank.
  • Instead, box 14 Other reports “RRTA compensation,” “Tier I tax,” “Tier II tax,” “Medicare tax,” and “Additional Medicare Tax.”

On the W2 screen, enter only Tier I and Tier II withholding in box 14 Other.

 

@Drake2985

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Drake2985
New Member

It is telling me my husband's employer owes him a refund from his Railroad Retirement Tier 1 tax that was withheld

Correct. For some reason, TurboTax is telling me that my employer owes me a refund for withholding too much Tier1, even though 6.2% was withheld. I’m not sure if it’s a glitch i the system but I can’t finish my taxes until it’s resolved.

SamS1
Expert Alumni

It is telling me my husband's employer owes him a refund from his Railroad Retirement Tier 1 tax that was withheld

In TurboTax, 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

 

We don't have specific information on the income qualifications or procedures for the third stimulus payment because the measure hasn't been passed yet. However, If you had issues receiving your earlier stimulus, then the best way to ensure that you are one of the first to receive any future stimulus payments is to file your 2020 tax return as early as possible and use direct deposit so that the IRS will have your updated information. 
 
You can find the most up to date information from the IRS here, and updates from TurboTax here as they develop.

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