Why does Turbo Tax see my Railroad retirement as an annuity?

Yes, Railroad Retirement benefits are considered an Annuity, if you received Form RRB-1099-R. 

 

The Railroad Retirement Act (RRA) replaces the Social Security Act for rail industry employers and employees and provides monthly annuities for employees based on age and service or on disability. 

 

• Form RRB-1099-R (Annuities or Pensions by the Railroad Retirement Board) is a green form and reports non-Social Security equivalent benefits payments, which are entered in the same place as 1099-Rs.

 

Here's more info on How to Enter Form RRB-1099-R.

 

@dagee2022 

How do I know if the tax method is simplified or general?

"If you receive annuity payments from a nonqualified retirement plan, you must use the General Rule. Under the General Rule, you figure the taxable and tax-free parts of your annuity payments using life expectancy tables that the IRS issues. 

 

Generally, if you begin receiving annuity payments from a qualified retirement plan, you use the Simplified Method to figure the tax-free part of the payments. A qualified retirement plan is a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity plan or contract (refer to Publication 575 for definitions)." ( Pensions – the General Rule and the Simplified Method)