W2 has amt in box 14 labeled Tier1 and tier2 that we contribute to RR. He is not retired, so this is just our contribution amt. what option do I pick in dropdown box

[DawnC0]

TurboTax recognizes the codes Tier 1 and Tier 2 in box 14 of your W-2, so you only need to choose these codes from the drop-down menu.   They are near the bottom of the list.  Look for ''Railroad Retirement Tier 1 Tax'' and below that is ''Railroad Retirement Tier 2 tax''.  TurboTax will properly report and apply these amounts on your tax return.  

ADD another line 14 entry with the same amount as in Box 1 Wages. Select code - "Railroad Retirement Compensation." Code RR

You received the error message because the amount on Line 14 is greater than allowed, but entering the above information will allow your railroad income to be properly reported.

[juju0622]

I did choose those options, but I get a warning saying that we contributed too much, because we have no railroad retirement earnings...It says we are required to be taxed on 6.2% of earnings?  This is just the amount that is withheld from his check for future retirement....please advise what I need to do

[DawnC0]

Please see updated answer; easy fix!

[mcramlet]

I am also getting the message telling me that I contributed too much.  I contacted my employer and verified the amount and it is correct.  What is the easy fix?

[KarenJ2]

See updated answer below beginning with ADD another line 14....

TurboTax recognizes the codes Tier 1 and Tier 2 in box 14...

TurboTax recognizes the codes Tier 1 and Tier 2 in box 14 of your W-2, so you only need to choose these codes from the drop-down menu.   They are near the bottom of the list.  Look for ''Railroad Retirement Tier 1 Tax'' and below that is ''Railroad Retirement Tier 2 tax''.  TurboTax will properly report and apply these amounts on your tax return.  

ADD another line 14 entry with the same amount as in Box 1 Wages. Select code - "Railroad Compensation." Code RR

You received the error message because the amount on Line 14 is greater than allowed, but entering the above information will allow your railroad income to be properly reported.

[Rah927]

There is no choice for Railroad Compensation.  I only see Railroad Retirement Compensation.

[SteamTrain]

@Rah927    Those are the same thing

.......the prior post just  missed noticing that  "Retirement" was in the middle.

[JillBaskets]

In Box 14 add an extra line for "RailRoad Retirement Compensation" and then enter the following:

• The amount in Box 1 (Gross Wages)
• PLUS any amount in Box 12 - Code D - 401k Contributions
  • (401k contributions are not taxable for federal purposes, and therefore are excluded from the Box 1 amount.  You need to add it back for TurboTax to properly calculate the Tier1)

[peterschack]

Thank you for this MEGA-useful tip.  I did not find the answer to this anywhere else, and it solved the issue.

[ABerg2]

I'm running into the same issue. I entered the wages from box 1 as mentioned in this thread and selected "Railroad Retirement Compensation". However, what should be used in the Description Box? Also, someone mentioned including the amount listed in box 12a with code "DD" because it is not taxable income. Is this true?

[DawnC]

It doesn't matter what you put in the description box, TurboTax will know what to do with the information based on the category selection of RR Retirement Compensation.  You can put RR compensation in the description field.   And you do not need to add anything to the box 1 wages for that entry.    Entering your taxable income from Box 1 is all that is needed to remove any errors.   It is true that the amounts in Box 12 with code DD (Cost of employer-sponsored health coverage) are not taxable, but you don't need to add it any Box 14 items.  Code DD amounts are for informational purposes only — they don't affect the numbers in your tax return.    @ABerg2

[pookie10]

this actually worked thanks box 1 plus box 12d with RR and railroad retirement compensation

[mariegee]

Thank you!  This is exactly the information I was looking for, I knew it had to do with 401k withholding, just didn't know how to enter it.  Thanks!

[Bingo762]

I'm getting the same error message as well. It's saying my employer withheld too much but the amount of the over payment is the total amount of my tier 1. 

I created an extra line in box 14 and entered my gross wages and am still getting the same message