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New Member
posted Feb 27, 2021 11:44:40 AM

Why is Turbo Tax saying that the employer owes us a refund on Railroad Retirement Tier 1 Tax when it was supposed to be withheld?

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5 Replies
Level 8
Feb 28, 2021 4:27:56 PM

The TurboTax program is letting you know, based on your entries, that your employer had too much withheld on your behalf and therefore owes you a refund of these amounts due back to you.

New Member
Mar 1, 2021 1:38:13 PM

Thank you for your answer, however, Turbo Tax is saying the entire amount withheld needs to be refunded by the employer and that they calculated it to be $0. Shouldn't some of the tax be withheld? I believe it was in the past.

Expert Alumni
Mar 1, 2021 2:23:30 PM

Yes, the tax has been withheld.  You may need to add another line item to box 14.  ADD another line 14 entry with the same amount as in Box 1 Wages.   Select code - "Railroad Retirement Compensation."  Code RR Ret. Compensation.    This should prevent any errors and allow you to e-file.    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 and withholding to be properly reported.

 

  • RR Tier 1 - xx
  • RR retirement compensation - Box 1 wages

 

Returning Member
Feb 17, 2025 12:57:06 PM

Why is Turbo Tax saying the employers owes us a refund of all RR Tier 1 tax withheld in 2024?

[email address removed]

Expert Alumni
Feb 18, 2025 6:47:57 PM

Did you have a RRB-1099 or an RRB-1099-R?

 

Here's more info on How to Enter Form RRB-1099 and some info from the IRS on RRB-1099's to help you enter it in TurboTax. 

 

@Slanham1