How to Enter a Railroad W-2
- Go to the Federal section.
- Select Income.
- Choose My Forms.
- Select W-2.
- Check the box labeled "This is a railroad W-2."
Once selected, the program will display additional railroad-specific fields below the Box 14 entry area.
What Happens When I Check the "Railroad W-2" Box?
Checking this box tells the program that your W-2 follows railroad tax reporting rules rather than standard Social Security and Medicare reporting rules.
- Additional railroad retirement fields become available.
- Railroad tax information entered in those fields is carried to the appropriate areas of your return.
- The program treats the form differently from a standard W-2 to help prevent reporting errors.
What's the Difference Between a Regular W-2 and a Railroad W-2?
Regular W-2
- Social Security wages and tax withheld (Boxes 3 and 4)
- Medicare wages and tax withheld (Boxes 5 and 6)
These taxes are administered through the Social Security system.
Railroad W-2
Railroad retirement taxes are divided into two parts:
- Tier I taxes, which are similar to Social Security taxes and help fund retirement, disability, survivor, unemployment, and sickness benefits.
- Tier II taxes, which function more like an additional pension benefit.
Why Is It Important to Mark My W-2 as a Railroad W-2?
Selecting the railroad W-2 option helps ensure your tax return is prepared correctly.
Railroad employees generally should not report amounts in Boxes 3, 4, 5, and 6 the same way a standard employee would. When the railroad W-2 box is selected, the software knows to use the railroad retirement information instead of treating the form as a traditional W-2.
Don't worry if you entered amounts in those boxes before checking the railroad box. Once the form is marked as a railroad W-2, the program will use the railroad reporting rules and ignore entries that don't apply.