How do I report my railroad W-2?
- Federal Section
- Income
- W-2
- Check the box 'This is a railroad W-2'
What does checking that box do in the program?
By checking the box indicating the W-2 is for a railroad, this section opens up below the Box 14 entry field. This information is then pulled into box 14 on the W-2.
What's the difference in a regular W-2 and a railroad W-2?
The main difference between a regular W-2 and a railroad W-2 lies in the specific tax withholdings and reporting requirements for railroad employees under the Railroad Retirement Act (RRTA).
Key differences:
- Social Security and Medicare Taxes:
- Regular W-2: Includes Social Security (Box 3) and Medicare (Box 5) wages and taxes.
- Railroad W-2: Instead of Social Security, it includes Tier I (equivalent to Social Security) and Tier II (a private pension) taxes. Boxes 3 through 7 are typically blank1.
- Tier I and Tier II Contributions:
- Tier I: Similar to Social Security, it covers retirement, disability, survivor benefits, unemployment, and sickness insurance2.
- Tier II: A private pension plan that provides additional retirement benefits beyond Tier I2.
- Reporting:
- Regular W-2: Employers report wages and taxes to the Social Security Administration (SSA).
- Railroad W-2: Employers report to the Railroad Retirement Board (RRB) and must ensure that railroad retirement taxes are not reported as Social Security taxes.
Why is it important to mark my W-2 as a railroad W-2?
Railroad employees should make no entries in boxes 3, 4, 5, and 6 of Form W-2. But don't worry! As long as you have checked the box indicating the W-2 is for the railroad, we will not pull any amounts you may have entered in those boxes.