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Turbotax is not correctly computing excess railroad retirement and social security (multiple employers).

 
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5 Replies

Turbotax is not correctly computing excess railroad retirement and social security (multiple employers).

Are you talking about excess Tier1?  if so.... This may or may not help

 

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.

lakenlacy
New Member

Turbotax is not correctly computing excess railroad retirement and social security (multiple employers).

Thank you ,

This worked

Turbotax is not correctly computing excess railroad retirement and social security (multiple employers).

This worked.  Why?  I'm glad to see it fixed, but this is the second year in a row that I am struggling with this problem.  It would be good for this issue to be resolved permanently.

Renoguy83
New Member

Turbotax is not correctly computing excess railroad retirement and social security (multiple employers).

Thank you for this solution. Let's hope I remember this next year 🙂

smsboodoo
New Member

Turbotax is not correctly computing excess railroad retirement and social security (multiple employers).

I'm having this same issue. Part of the year I worked at a non-railroad, the last part I worked at a railroad. I know I overpaid, but there is no Schedule 3 being created for me and I have no way of knowing whether it was calculated in the owe/due box.

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