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If the sum of a recipients adjusted gross income, tax-exempt interest, and half of either Social Security benefits or Social Security-equivalent Tier I Railroad Retirement benefits exceeds $25,000 for single taxpayers or $32,000 for couples who file jointly, up to 50 percent of the benefits are taxable.
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The RRA has two components. Tier 1 is the equivalent of Social Security benefits and Tier 2 is like an employers pension plan. Social Security Benefits: Payments made under Title II of the Social Security Act. They include old- age, survivors, and disability benefits.
Tier I is the railroad retirement equivalent of social security wages and benefit amounts. Employees and employers pay taxes based on the employees earnings.
Enter the amount from Box 5, Net Social Security Equivalent Benefit portion of Tier 1 Paid in the current tax year, on the Taxpayers or Spouses Social Security Benefits line. To report the GREEN portion of Railroad Retirement, go to: Federal Section. Income (Select My Forms)
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RRTA imposes a tax on all employers and employees with respect to a percentage of compensation that employers pay to employees in exchange for services. 3201, 3211. Employees who pay tax under RRTA are ultimately eligible for railroad retirement benefits under the Railroad Retirement Act (RRA).
The SSEB portion of tier I (the part of a railroad retirement annuity equivalent to a social security benefit based on comparable earnings) is treated for Federal income tax purposes the same way as a social security benefit.
Form W-2 Box 14 Railroad employers use this box to report railroad retirement (RRTA) compensation, Tier 1 tax, Tier 2 tax, Medicare tax, and Additional Medicare Tax. Include tips reported by the employee to the employer in railroad retirement (RRTA) compensation.

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