If you received a W-2 from a railroad employer, you'll need to identify it as a railroad W-2 when entering your tax information. This helps ensure your wages and railroad retirement taxes are reported correctly on your tax return.
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.
When selected:
- 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?
The biggest difference is how retirement and payroll taxes are reported.
Regular W-2
A standard W-2 reports:
- 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 employees generally pay taxes under the Railroad Retirement Act (RRTA) instead of the standard Social Security system. Railroad employers report retirement taxes to the Railroad Retirement Board (RRB) rather than the Social Security Administration.
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.
Because of these reporting differences, railroad W-2 forms may not contain the same information typically found in Boxes 3 through 6 of a regular W-2.
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.
Need More Help?
Before entering your W-2, compare it carefully with any year-end statement provided by your railroad employer. Railroad W-2s often include additional information related to Tier I and Tier II taxes that isn't found on a standard wage statement.