DIY Products

DIY Products

Whether you’re an experienced do-it-yourselfer or doing your own taxes for the first time, this is your place to learn and share. Here you’ll find information and resources for using H&R Block’s online and software DIY solutions. You’ll also find links to more information to assist you on your DIY journey.

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Pioneer
Posts: 1
Registered: ‎02-10-2018

Railroad tier taxes and w-2 input on free-file

I filed with Free-File last year, but I honestly can't figure out how I ever did. This year I have hit a brick wall.

    I am a Railroad employee. My w-2 shows no entry for SS wages or contributions, no entry for MC wages or contributions. This is normal I understand it. 

    In box 14 I have three contributions. "Tier 1a" this is the highest amount it is 6.2% of my income, it is RRT1 tax.  "Tier 11" is ~5% of my income it is RRT2 tax. "Tier 1b" is ~1.5% of my income it is Railroad Medicare.  These amounts make sense the way I understand it.

  The problem is, when I enter the codes in Box 14 on Free-File it wants more information. The program says I need RRT1 wages, RRT2 wages, and Railroad Comp. Where do I come up with these amounts? Am I misunderstanding the Tiers on my W-2? Am I putting them in correctly?

  The suggestion found in FAQ seemed to suggest I would put tier 1 in box 3 and tier 2 in box 4, that cannot be right, as box 3 (ss wages) would be only 6.2% of my wages and box 4 (ss tax) would be 5% of my total wages.  I called an 800 number and got told by an automated voice to upgrade for $29.99 to speak with a professional. I don't think I need a tax pro I just need someone who knows where to put the info in and what else it is asking of me.

Associate (Pioneer)
Posts: 253
Registered: ‎01-08-2018

Re: Railroad tier taxes and w-2 input on free-file

Hello StapFamTEA,

 

Welcome to H&R Block Community.

 

According to the information you have provided, it seems you are using the H&R Block online tax program. In the W-2 Wages screen, if you receive an on-screen message asking to make an entry for RRT1 Wages, RRT2 Wages, and Railroad Compensation or RRTA Compensation, then if your w-2 box 14 happens to have a dollar amount for RRTA Compensation or Railroad compensation, you would use that dollar amount to make a box 14 entry for RRT1 Wages, RRT2 Wages, and RRTA Compensation in the tax program. If your actual W-2 Form does not list the box 14 information for Railroad compensation or RRTA Compensation, then use the amount in box 1 of the w-2 as the entry for RRT1 Wages, RRT2 Wages, and RRTA Compensation in the box 14 section of the Wages W-2 screen.

 

Regards,

 

Lawrence

Tax Research Specialist

Pioneer
Posts: 1
Registered: ‎04-10-2018

Re: Railroad tier taxes and w-2 input on free-file

Lawarence,

 

I have a similar question.  I enter the box 14 information on the online program (it includes: medi tax, rrta comp, tier 1 tax, and tier 2 tax).  When I click next page, I get an error message saying if tier 1 and 2 taxes are there then I have to enter tier 1 and 2 wages.  What do I enter for wages?

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Associate (Pioneer)
Posts: 253
Registered: ‎01-08-2018

Re: Railroad tier taxes and w-2 input on free-file

Hello donaherp,

 

Welcome to the H&R Block Community.

 

When you have an error message to enter an amount for RRT1 (tier 1) wages and RRT2 (tier 2) wages, since your W-2 box 14 has an amount for RRTA Comp, then what you do is add an entry for RRT1 Wages and RRT2 Wages for box 14 in the online tax program. Then, for the dollar amounts for RRT1 wages and RRT2 wages, you will use the RRTA comp. dollar amount for RRT1 and RRT2 wages in box 14 and that should remove the error message in the online tax program.

 

Hope this clears it up for you.

 

Regards,

 

Lawrence
Tax Research Specialist

Member
Posts: 1
Registered: ‎04-16-2018

Re: Railroad tier taxes and w-2 input on free-file

I had this same issue and I tried to add the Railroad compensation amount as the wage but I received another error staring that the amount needed to be less than 94k. But the compensation is more than that. Any idea how to get past that?
Associate (Pioneer)
Posts: 253
Registered: ‎01-08-2018

Re: Railroad tier taxes and w-2 input on free-file

Hello Mell,

 

Welcome to the H&R Block Community.

 

If you have received an error message that says something along the following, "the Box 14 amount can’t be more than $94,500 when the Box 14 code is RRT2," then what you do in that case is to have the "RRT2 wages" in [Box 14] to be at $94,500 and have "RRTA Compensation" to be at whatever amount you have entered even if it is larger than $94,500. In other words, leave the "RRTA Compensation" amount as it is in the tax program and change the "RRT2 Wages" to $94,500. If you happened to have an error message for "RRT1 Wages" as well to be less than some dollar amount, then use that dollar amount for "RRT1 Wages" in [Box 14]. For instance, if the error message happens to tell you that the "RRT1 Wages" must be less than $94,500, then use $94,500 for "RRT1 Wages."

 

Regards,

 

Lawrence
Tax Research Specialist