Unemployment Benefits for Railroad Employees
UB-10 (03-12)
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.
