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Wendy Reed
Wendy Reed, Enrolled Agent
Category: Tax
Satisfied Customers: 3346
Experience:  15+ years tax preparation and tax advice.
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How should a railroad worker's W-2 box 14 be filled out?

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I have a railroad worker with Box 14 of W-2 reflecting withholding from:
RRT1 5,853.85
RRT1A 1,369.05
RRT2 3,088.80
Are both RRT1 and RRT1A combined for the social security withholding max meaning the employer withheld approx $601 excess which they owe the employee?

Thank you for giving me the opportunity to assist you. I will give the best answer that I can with the information provided.

Hello,

RRTA Tier 1 and social security withheld should not be greater than $6621.60 for the year, and Tier II benefits should not be greater than $3088.80.

From your description of box 14, it appears that this employee hit the max for Tier II (3088.80) and that the 5853.83 dollars corresponds to the RRTA tier 1 equivalent SS benefits (6.2% of taxable income) and teh $1369.05 corresponds to the Medicare equivalent (1.45% of taxable income). Wages subject to these taxes should have been approximately $94416.94.

If this is the only withholding for the year, the employer did not overwithhold.

Please see page 4 of the W2 instructions, and see Tip at the bottom. This will explain the max amounts. The $1369.05 is not combined with the 5853.83 because it represents the Medicare portion, and there is no yearly limit on medicare tax.

http://www.irs.gov/pub/irs-pdf/iw2w3_09.pdf

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