topic WHY won't Turbotax recognize railroad tier 1 and tier 2 for box 14?? I keep getting the stupid error message that my employer withheld too much? NOT ACCURATE AT ALL! in Retirement tax questions

WHY won't Turbotax recognize railroad tier 1 and tier 2 for box 14?? I keep getting the stupid error message that my employer withheld too much? NOT ACCURATE AT ALL!

shevon2016 — Wed, 05 Feb 2020 23:13:53 GMT

Re: WHY won't Turbotax recognize railroad tier 1 and tier 2 for box 14?? I keep getting the stupi...

AnnetteB6 — Fri, 07 Feb 2020 20:26:25 GMT

Try adding an additional box 14 entry with the amount reported in box and the drop-down code RR for Railroad Retirement Compensation.

This should clear the error message.

Re: WHY won't Turbotax recognize railroad tier 1 and tier 2 for box 14?? I keep getting the stupi...

shevon2016 — Sat, 08 Feb 2020 03:42:19 GMT

This reply does not make sense! WHY must railroaders go through this suggested process? First, RR Tier 1 and 2 are NOT considered wages or compensation. These are actual our pension amounts which are deducted from our checks in the form of being taxed, so why must I add another box as compensation? I don't believe that this is the workaround that should be used.

How about your developers create a BETTER software system to recognize railroaders??!

Re: WHY won't Turbotax recognize railroad tier 1 and tier 2 for box 14?? I keep getting the stupi...

SteamTrain — Sat, 08 Feb 2020 14:55:20 GMT

@shevon2016 @AnnetteB6

I'm not a RR W-2 expert by any means

...but I think what they are saying, is the box 1 value must also be in box 14 as the category "Railroad Retirement Compensation"

The Tier 1 and Tier 2 taxes withheld need a value to compare to....

......(My problem is that I don't really know if box 1 is always used, or whether box 1 can sometimes be different from the exact "Compensation" value needed for box 14....thus, the box 14 "Compensation" value may occasionally need to be different.

Re: WHY won't Turbotax recognize railroad tier 1 and tier 2 for box 14?? I keep getting the stupi...

trinityct — Tue, 25 Feb 2020 02:26:30 GMT

@SteamTrainis correct, you must enter the amount in box 1 in box 14 under the heading of "Railroad Retirement Compensation" in order to clear the error. Try entering RR in the first column box in 14 to the right of the total compensation figure. Doing this will clear the error.

@shevon2016is also correct. There is no reason why TurboTax couldn't fix this by asking if the compensation in box 1 is Railroad compensation and then correctly proofing the Tier 1 and Tier 2 tax figures, thus preventing the error message.

Re: WHY won't Turbotax recognize railroad tier 1 and tier 2 for box 14?? I keep getting the stupi...

TAHmo — Wed, 04 Mar 2020 23:03:44 GMT

The workaround worked but it shouldn't need to be done. I checked my last few years worth of returns and none of them had the compensation value added but I had no issues. I spent an hour on the phone with TT customer service yesterday and while she tried her best and had help from other people the couldn't figure it out basically told me it was a legit error. I stopped going to another very common tax place years ago because I got tired of trying to explain railroad retirement and the tiers to them. There are too many other tax prep software and websites out there to have what looks like a stupid error. They need to get this figured out.

Re: WHY won't Turbotax recognize railroad tier 1 and tier 2 for box 14?? I keep getting the stupi...

Imafunk — Wed, 09 Dec 2020 20:00:36 GMT

Thank you!!! It worked!

Re: WHY won't Turbotax recognize railroad tier 1 and tier 2 for box 14?? I keep getting the stupi...

susanw1967 — Mon, 08 Feb 2021 21:14:01 GMT

this is the first year we have had this error message come up. my spouse has worked with the railroad for 27 years. smh I am going to try this suggestion when I get home tonight. thanks

ps: it has the wages listed in the box 14 but it is as rrmedwage and there is no label for that. so I should put rrcompensation as the label for it?

Re: WHY won't Turbotax recognize railroad tier 1 and tier 2 for box 14?? I keep getting the stupi...

BlknricAnluv — Sat, 27 Feb 2021 20:12:27 GMT

I don’t understand what I’m supposed to put to fix the error

Re: WHY won't Turbotax recognize railroad tier 1 and tier 2 for box 14?? I keep getting the stupi...

SamS1 — Mon, 01 Mar 2021 18:18:17 GMT

Railroad retirement is exempt for state income taxes.

Re: WHY won't Turbotax recognize railroad tier 1 and tier 2 for box 14?? I keep getting the stupi...

juniper1980 — Sat, 06 Mar 2021 01:42:01 GMT

I have added a line for Railroad retirement compensation using wages in box 1 plus 12d as suggested in the link you provided. It did make an adjustment, but still shows a small amount of overpayment. Any thoughts?

Re: WHY won't Turbotax recognize railroad tier 1 and tier 2 for box 14?? I keep getting the stupi...

SamS1 — Sun, 07 Mar 2021 19:29:37 GMT

Include only your box 1 amount and see if TurboTax is making the adjustment for the amount in box 12 d code automatically. If that does not work, are there any other amounts in box 12 that might have decreased your Tier 1 or Tier 2 wages amount? We are basically looking for your gross railroad wages before any deductions in box 12 that would have lowered your taxable compensation.

Re: WHY won't Turbotax recognize railroad tier 1 and tier 2 for box 14?? I keep getting the stupi...

juniper1980 — Sun, 07 Mar 2021 21:58:53 GMT

There was another very minimal amount in box 12, but is not enough for it to calculate correctly. There was also an additional line in box 14 besides tier1, tier2 and the rr Medicare. Employer has told me it is covid sick leave. I’ve even tried adding that to gross wages, but still get a small over payment. I’ve tried all the combinations I can think of. Have never had this problem using turbo tax in the past, something must have changed in their software. At this point I’m wondering if it really is a mistake with the W2 or turbo tax?

Re: WHY won't Turbotax recognize railroad tier 1 and tier 2 for box 14?? I keep getting the stupi...

SamS1 — Mon, 08 Mar 2021 00:04:21 GMT

Your Tier 1 taxes should 7.65% of your compensation, The maximum wages Social Security tax portion (6.2%) is 137,700. There is no maximum on the Medicare portion (1.45%). The Tier II tax is 4.9% with maximum wage amount of 102,300. You might be able to back into the amount of your taxable compensation by using the Tier I percentages. From there you can look reported wages on your W-2 and box 12 and box 14 come to a total that will equal the calculated amount. The only variable would be if your compensation is over 137,700. Otherwise you can divide your Tier I taxes by 7.65% to get to your taxable compensation amount then go from there.

Re: WHY won't Turbotax recognize railroad tier 1 and tier 2 for box 14?? I keep getting the stupi...

Wildkri20 — Thu, 25 Mar 2021 02:23:23 GMT

Box 1 is 27,255.89

14 rrmedtax 412.25

rrmedwage 28431.42

rrtier1 1762.75

rrtier2 1393.14

Getting sane error but if I multiply 7.65% to box1 is about 300 off tier1 and tier 2 is calculated off the rrmedwage? Any suggestions or just match box1 to rrmedwage and call it a day?

Re: WHY won't Turbotax recognize railroad tier 1 and tier 2 for box 14?? I keep getting the stupi...

juniper1980 — Thu, 25 Mar 2021 12:16:56 GMT

rrwages are calculated off of tier1. What cleared the error and worked for me was dividing Tier1 by 6.2%. So with your numbers: 1762.75/0.062=28,431.45

Not sure if it mattered but I listed them in this order:

tier1 1762.75

tier2 1393.14

rrmedtax 412.25

rrwages 28431.45 (make sure you pick rr retirement compensation for this one from drop down menu)

Re: WHY won't Turbotax recognize railroad tier 1 and tier 2 for box 14?? I keep getting the stupi...

SamS1 — Mon, 29 Mar 2021 17:21:52 GMT

Enter your Railroad Retirement Tier 1 amounts in box 14 of the W-2. Do not enter it box 4 for Social Security withholdings. In box 14, enter the description, amount, and select the category drop down then scroll to Railroad Retirement Tier 1. Additionally, you will need to enter in box 14 the Railroad Retirement compensation amount from box 1 of the W2 so the overpayment is not reported. Select "Railroad Retirement Compensation" from the box 14 category.

Click here for more information on entering Railroad Retirement information in TurboTax

Your Tier 1 taxes should 7.65% of your compensation, The maximum wages Social Security tax portion (6.2%) is 137,700. There is no maximum on the Medicare portion (1.45%). The Tier II tax is 4.9% with maximum wage amount of 102,300. You might be able to back into the amount of your taxable compensation by using the Tier I percentages. From there you can look at reported wages on your W-2 and box 12 and box 14 come to a total that will equal the calculated amount. The only variable would be if your compensation is over 137,700. Otherwise you can divide your Tier I taxes by 7.65% to get to your taxable compensation amount then go from there.

Re: WHY won't Turbotax recognize railroad tier 1 and tier 2 for box 14?? I keep getting the stupi...

brockstar — Sun, 09 May 2021 00:18:03 GMT

This is not resolving the issue for me. Can I just ignore this and go on and my taxes will be correct? Now I know why I got a 6000 overpayment return last year. I am going to have to take my taxes to a preparer and do them by hand next year, plus file an amended return for last year. I wonder how many previous years were my taxes messed up?

Re: WHY won't Turbotax recognize railroad tier 1 and tier 2 for box 14?? I keep getting the stupi...

Bworley — Wed, 12 May 2021 23:19:42 GMT

This is a Great Fix for a Common problem with UP W2's