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Deductions for Excess Earnings and Taxation
(Posted December 20, 2004)
Question 535: Does a retiree pay taxes on the amount the Railroad Retirement Board (RRB) deducts from Tier 2 for excess earnings?
Answer: You should pay taxes only on the amount of Tier 2 payments that you receive in each year.
The RRB should send you Forms 1099 each January with the totals of Tier 1 and Tier 2 benefits paid to you during the preceeding year. Follow those reports in completing your federal income tax forms.
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