If 2 different employers withheld tier 1 RRTA tax

[brittanylippard]

The excess is not showing up automatically so I am trying to figure out where in the credits/deductions I enter this number in to show up on schedule 3 line 11.

[JamesG1]

In TurboTax Premier I was able to successfully enter such a transaction.

After you entered the W-2 that put you into an excess status, did the software ask you to confirm the numbers on the W-2 at the screen Let's review the amounts in boxes......?

The screen says It looks like you're due a refund from your employer.

Did you see either of these screens?

[brittanylippard]

Thank you!

Yes, I do see the message that the employer should refund and send a corrected W2. However when we contacted the employer, the representative told us that isn't correct and our will not provide the refund or a corrected W2.

We are married filing jointly and I am wondering if this is the issue on turbotax.

The IRS page https://www.irs.gov/taxtopics/tc608 states at the end that "If you're filing a joint return, you and your spouse must figure any excess Social Security tax or Tier 1 RRTA tax separately." This is very vague and I don't know what "figuring" means.

[RaifH · Accepted solution]

If TurboTax calculates that the amount of RRTA Tier 1 tax withheld should have been $0, you may need to enter the amount of Railroad Retirement Compensation in Box 14 in addition to the amount of RRTA Tier 1 taxes withheld. That is how TurboTax calculates how much the Tier 1 withholding should be. The amount of Railroad Retirement Compensation in Box 14 should match the Wages reported in Box 1. 

[VolvoGirl]

Do you and your spouse both have W2 from the same employer?  Sorry the max is per person not combined.  And it sounds like you might have entered both W2s under the same  spouse.  Also try leaving the cents off the SS or RRTA amount in box 4.

The program will figure out any excess for you if you paid over the max.  For 2021 the max for Social Security is $8,853.60 on $142,800 of wages (142,800 x 6.2%).

You only get excess SS back if ONE SPOUSE  had more than 1 employer and those employers took out more than the max of  $8,853.60 (for 2021).  If one employer took out more than the max you have to get it back from the employer.

[brittanylippard]

Thank you! I just figured out that I needed to include another box 14 item for RAILROAD COMPENSATION. Your post helped me research and find this thread here https://ttlc.intuit.com/community/retirement/discussion/re-i-am-a-railroad-employee-and-made-payment....

After I got all box 14 items from the W-2 entered, I had to add another line for Railroad Compensation:

1. In BOX 14, type in "RAILROAD COMPENSATION"

2. Enter the $ amount that is equal to the sum of BOX 1 WAGES plus BOX 12 D 401K CONTRIBUTIONS.

3. From the dropdown menu select "RAILROAD COMPENSATION."

This solved my problem and created the correct credit on Schedule 3 Line 11!

[Ali04]

Hello! I have the same problem and I was trying to follow the steps you mentioned above. Did you add the Railroad compensation to only the second W2 or did you have to add it to both? I tried to add it to the second W2 only, but nothing changed. It still gave me the warning that my employer must provide a refund (which they won’t do). How did you finally get it to work?

[AnnetteB6]

If your situation is for two railroad employers withholding tier 1 RRTA tax, then you will need to add the information for Railroad Compensation in box 14 of both W-2s.  

@Ali04

[Ali04]

Thank you. I just tried this and at first a got a screen that said I was due a refund… but then the next screen again said I had to get it from my employer. How do I get this to work so the credit is included in my return. My employer is a CPEO and advised I have to get it through my return. 

[brittanylippard]

After I got all box 14 items from the W-2 entered (I only have one W2 from a Railroad Type Company), I had to add another line for Railroad Compensation in box 14. Here's how I did it:

1. In BOX 14, type in "RAILROAD COMPENSATION"

2. Enter the $ amount that is equal to the sum of BOX 1 WAGES plus BOX 12 D 401K CONTRIBUTIONS.

3. From the dropdown menu select "RAILROAD COMPENSATION."