Question

Problem: employer withheld too much Railroad Retirement Tier 1 tax. Employer has verified that the W2 is correct. Workaround failed. What now?

Forum|Forum|5 years ago
February 2, 2021
1 reply
0 views

I tried the workaround by inputting an additional line for box 14 with the wage amount that is in box 1 and selected "Railroad compensation". Still, it calculates too much withheld.

TurboTax Deluxe Online

G

gloriah5200

Please compare the amounts reported on the W2 to the following;

Railroad Tier 1 maximum withholding is as follows:

Maximum taxable compensation during 2020 is $137,700 for tier 1
Maximum taxable compensation during 2020 is $102,300 for tier 2.

Maximum taxable compensation for social security during 2020 is $137,700.

Please be aware that the Railroad W-2 is designed differently and you may have to look in boxes to see the actual amounts withheld for Tier 1 (social security equivalent portion) and Tier 2 (retirement portion)

SteamTrain

Employee

Max Tier 1 SS "withholding" is $ 8537.40

_____________

But unless you hit this level it's not likely the problem. Could be a simple rounding inconsistency. Try rounding the "withholding" down to an even $ amount even if cents are shown in the withholding amount.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

R

rdavia

Looks like an error in the TurboTax Deluxe 2020 product. Software says my calculated Tier 1 amount is $8,190.89, but by law it is $8537.40. Should be 6.2% of wages. Product says that I cannot file my taxes until I get a new W-2 with lower Tier 1 contribution.