Regular railroad retirement annuities consisting of tier I, tier II, and Vested Dual Benefit components, have been subject to United States Federal income tax since 1984. Supplemental annuities have been subject to Federal income tax since 1966. According to the Railroad Retirement Act, Section 14 (45 U.S.C. Section 231m ), railroad retirement annuities are not taxable for State income tax purposes.
Refer to booklet TB-25,"Tax Withholding and Railroad Retirement Payments", for more detailed information regarding tax withholding on railroad retirement payments. Refer to booklet TB-85, "Information about the Taxation of Railroad Retirement Annuities", for general taxation information.
We only report taxable payments and repayments on the tax statements. Questions about U.S. income tax information, what amounts to show on income tax returns, or how to figure your taxable payments should be referred to the Internal Revenue Service. However, questions about railroad retirement benefit payments should be referred to your local Railroad Retirement Board office.