Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 3, 2019 6:27:12 PM

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

0 33 32915
24 Replies
Intuit Alumni
Jun 3, 2019 6:27:13 PM

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.

New Member
Jun 3, 2019 6:27:15 PM

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

Intuit Alumni
Jun 3, 2019 6:27:16 PM

Please see updated answer; easy fix!

New Member
Feb 3, 2020 1:18:10 PM

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?

Expert Alumni
Feb 5, 2020 10:14:18 AM

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.

New Member
Feb 8, 2020 4:25:58 AM

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

Level 15
Feb 8, 2020 6:32:45 AM

@Rah927    Those are the same thing

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

 

Level 1
Feb 15, 2020 6:13:02 AM

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)

 

Level 2
Feb 15, 2020 7:59:37 AM

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

New Member
Jan 25, 2021 2:38:01 PM

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?

Expert Alumni
Jan 25, 2021 2:58:25 PM

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

New Member
Feb 8, 2021 3:01:34 PM

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

Level 1
Feb 9, 2021 5:36:55 AM

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!

Level 1
Feb 18, 2021 4:40:48 PM

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

Expert Alumni
Feb 18, 2021 7:18:15 PM

@Bingo762 When you added the extra Box 14 line, did you Select code - "Railroad Retirement Compensation" Code RR?

 

Click this link for more info on Railroad Employee Box 14

 

Level 1
Feb 19, 2021 7:14:33 AM

Yeah, I did that and still got the message. 

Intuit Alumni
Feb 19, 2021 11:56:20 AM

This FAQ will provide you with the steps to contact an agent for further assistance.

Contact an agent

Level 2
Feb 25, 2021 1:01:41 PM

It seems there may be a bigger software issue. I've followed all the steps as well and it just isnt working. The RR where i'm employed knows if your using TurboTax because all the calls they've gotten regarding this problem.Hopefully it gets figured out soon.It was never a problem in the past

Level 1
Mar 14, 2021 9:20:08 PM

Hello,

It is not recognizing RRT 1 TX and RRT 2 TX  even after I entered the Box 1 (wages) amount as Railroad Retirement Compensation (RR) under Box 14, an error message comes up "It Looks Like You're Due a Refund from your Employer" - withheld too much. 

 

Please advise as to how to proceed

 

 

 

 

 

Level 1
Mar 14, 2021 9:22:18 PM

This did not resolve my issue

Level 1
Mar 14, 2021 9:23:29 PM

I'm getting the same error! Have you heard anything on how to resolve this issue?

Level 1
Mar 15, 2021 3:33:43 AM

Did you make contributions to a traditional deferred compensation plan?  If so, that amount needs to be added to the compensation amount. 

Level 2
Mar 15, 2021 6:30:17 PM

Its been happening to RR employees across the board. Add the extra box and it will still say you are due a refund from your employer and to get a an adjusted w2. I went to accounting they broke it down and tiers are all correct. It is a software issue they maybe they'll address by next year. Dont even waste your time like I did finish everything else and file. Super frustrating and alot of wasted time

New Member
Apr 16, 2021 7:19:06 AM

Okay so after a lot of frustration finally realized that my employer had RRMEDWAGE for line 14.  This represents your income before 401k and any other non taxable income.  If you have that info typed in correctly then on the the drop down menu to the right you need to make sure to select "Railroad Retirement Compensation" .  My drop down menu automatically had something else selected.   🎆PROBLEM FIXED, THANK GOD, i was about to go insane.  Hope this helps someone else.