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fpc
Level 3

Are Tier 1 Railroad Retirement Social Security Equivalent Benefits tax exempt in Kansas?

Turbotax home and business had entered our Retirement Tier 1 Social Security Benefit for 2020 as an exempt retirement benefit to our Kansas State Tax to be exempt from Kansas Income Tax.  

 

I believe this is correct:  Tier 1 Social Security Equivalent Retirement Benefits are tax exempt in Kansas (and Missouri I believe).

 

However The Kansas Department of Revenue has declared that amount not to be tax exempt in Kansas.  

 

How can I determine which way is correct?

 

Thank you!

 

Frank

1 Best answer

Accepted Solutions
Bsch4477
Level 15

Are Tier 1 Railroad Retirement Social Security Equivalent Benefits tax exempt in Kansas?

From Kansas website. 
 Retirement plans administered by the U.S. Railroad Retirement Board are not taxable. This includes U.S. Railroad Retirement Benefits, tier one, tier two, dual vested benefits, and supplemental annuities. The retirement benefits must be included in your federal adjusted gross income before it can be subtracted on your Kansas return. Retirement benefits taxed on your Federal return must be entered on Kansas Schedule S, Part A.

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3 Replies
Bsch4477
Level 15

Are Tier 1 Railroad Retirement Social Security Equivalent Benefits tax exempt in Kansas?

From Kansas website. 
 Retirement plans administered by the U.S. Railroad Retirement Board are not taxable. This includes U.S. Railroad Retirement Benefits, tier one, tier two, dual vested benefits, and supplemental annuities. The retirement benefits must be included in your federal adjusted gross income before it can be subtracted on your Kansas return. Retirement benefits taxed on your Federal return must be entered on Kansas Schedule S, Part A.

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fpc
Level 3

Are Tier 1 Railroad Retirement Social Security Equivalent Benefits tax exempt in Kansas?

Thank you.  

 

That seems pretty clear.  Why did Kansas call me out on that?  

 

I haven't been through this sort of thing before.  I guess I will attempt to call them and see what to do.  The amount they subtracted from my deductions is exactly the Tier 1 Social Security Equivalent amount and the lines shown on the form they sent is entitled, "Retirement benefits Specifically exempt from Kansas Income tax".  There they subtracted the amount that was added as income to the Federal form.

 

Thank you again !

fpc
Level 3

Are Tier 1 Railroad Retirement Social Security Equivalent Benefits tax exempt in Kansas?

I called the Kansas Department of Revenue.  On hold for about two minutes.  They realized they were in error.  I had to mail copies of my RRB-1099's to them.  So it seems to be a done deal.

 

Thank you for the help!

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