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Level 2
posted Feb 1, 2020 1:26:35 PM

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

1 5 2577
5 Replies
Level 1
Feb 1, 2020 9:29:06 PM

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.

New Member
Feb 2, 2020 6:33:34 PM

Thank you ,

This worked

Level 2
Feb 3, 2020 7:04:25 PM

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.

New Member
Apr 21, 2021 6:54:25 PM

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

New Member
Apr 8, 2024 1:27:53 PM

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.