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eusama
New Member

Problem: employer withheld too much Railroad Retirement Tier 1 tax. Employer has verified that the W2 is correct. Workaround failed. What now?

I tried the workaround by inputting an additional line for box 14 with the wage amount that is in box 1 and selected "Railroad compensation".  Still, it calculates too much withheld.
4 Replies
gloriah5200
Expert Alumni

Problem: employer withheld too much Railroad Retirement Tier 1 tax. Employer has verified that the W2 is correct. Workaround failed. What now?

Please compare the amounts reported on the W2 to the following;

 

Railroad Tier 1 maximum withholding is as follows:

 

  • Maximum taxable compensation during 2020 is $137,700 for tier 1
  • Maximum taxable compensation during 2020 is $102,300 for tier 2.

Maximum taxable compensation for social security during 2020 is $137,700.

 

Please be aware that the Railroad W-2 is designed differently and you may have to look in boxes to see the actual amounts withheld for Tier 1 (social security equivalent portion) and Tier 2 (retirement portion)

SteamTrain
Level 15

Problem: employer withheld too much Railroad Retirement Tier 1 tax. Employer has verified that the W2 is correct. Workaround failed. What now?

Max Tier 1 SS "withholding" is      $ 8537.40

_____________

But unless you hit this level it's not likely the problem.   Could be a simple rounding inconsistency.  Try rounding the "withholding" down to an even $ amount even if cents are shown in the withholding amount.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
rdavia
New Member

Problem: employer withheld too much Railroad Retirement Tier 1 tax. Employer has verified that the W2 is correct. Workaround failed. What now?

Looks like an error in the TurboTax Deluxe 2020 product. Software says my calculated Tier 1 amount is $8,190.89, but by law it is $8537.40.  Should be 6.2% of wages. Product says that I cannot file my taxes until I get a new W-2 with lower Tier 1 contribution.

SteamTrain
Level 15

Problem: employer withheld too much Railroad Retirement Tier 1 tax. Employer has verified that the W2 is correct. Workaround failed. What now?

IF you are using the desktop software...you may need to update your software.

 

IF the problem still occurs, look at your RR  Retirement Compensation amount, also in box 14, in case that is wrong.  RR compensation would have to be 137,700 to get the full 8537.40 indicated.

 

or....call Customer Support...they can get a Diagnostic file from you, and investigate to write up a software correction ticket...if needed, or let you know of some entry error you "might' have made.

 

https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632

 

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
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