Unemployment Benefits for Railroad Employees
Taxability of Unemployment Benefits
Unemployment benefits paid under the Railroad Unemployment Insurance
Act (RUIA) are considered income for Federal income tax purposes. Each
year, the Railroad Retirement Board (RRB) sends railroad employees Form
1099-G showing the total amount of unemployment benefits paid during
the preceding calendar year. You must report that amount on your
Federal income tax return.
You may file Form W-4v with the nearest RRB office if you want the RRB
to withhold Federal income tax from your benefits. To end withholding
you must file another Form W-4v with the RRB. Form W-4v is available
upon request from the Internal Revenue Service. The RUIA specifically
exempts railroad unemployment benefits from State income taxes.