Railroad Retirement Benefits

Railroad retirement benefits vs social security benefits

If you are a retired railroad worker, a part of the tier 1 railroad retirement benefits you receive is treated as social security benefits for tax purposes.

What are other names for the tier 1 railroad retirement benefits?

These are often called social security equivalent benefits.

How are railroad retirement benefits reported for tax purpose?

Use the same worksheets and follow the same rules to determine if any of these benefits are taxable. If any part of your tier 1 railroad retirement benefits is taxable, report the net amount of the benefits on line 20a of Form 1040 and the taxable portion on line 20b, just as you would with social security benefits.

Railroad retirement benefits that are treated as social security benefits are reported on Form RRB-1099, Payments by the Railroad Retirement Board.

What is the tax treatment for railroad retirement benefits that are not social security equivalent benefits?

Tier 1 benefits that are not social security equivalent benefits, tier 2 benefits, and certain other railroad employee benefits are treated as amounts received from a qualified retirement plan. You figure the taxable amounts of these payments under the rules for regular pensions. These benefits are reported on Form RRB 1099-R, Annuities or Pensions by the Railroad Retirement Board.