Coronavirus (COVID-19) News and Resources
Coronavirus (COVID-19) Webcasts
Subscribe to Free Daily Newsletters
Post a Job

Featured Jobs

Defined Contribution Plan Administrator

(Phoenix AZ)

MGKS logo

Retirement Plan Administrator


SPS logo

Retirement Plan Administrator

Steidle Pension Solutions, LLC
(Lebanon NJ)

Steidle Pension Solutions, LLC logo

Senior Plan Consultant

Jocelyn Pension Consulting
(Telecommute / San Rafael CA / Boulder CO)

Jocelyn Pension Consulting logo

Retirement Plan Consultant

DWC - The 401(k) Experts

DWC - The 401(k) Experts logo

Director of Regulatory Affairs

Health Plans Inc
(Westborough MA)

Health Plans Inc logo

Free Daily News and Jobs

“BenefitsLink continues to be the most valuable resource we have at the firm.”

-- An attorney subscriber

Get the BenefitsLink app LinkedIn

BenefitsLink > Q&A Columns >

Stop, Look & Listen: Railroad Retirement Benefits Q&A

Answers are provided by Robert S. Kaufman

What Kinds of Work and Income Should Be Reported by Disabled Workers

(Posted February 10, 2008)

Question 652: I receive an occupational disability annuity from Railroad Retirement. A family member incurred a very large debt on my credit card and I was
forced to negotiate a debt cancellation with the credit card company. I received a 1099-C form stating the amount canceled; I will file this with my 2007 federal income tax return. The amount of the cancellation is very substantial and is entered on IRS form 1040 as "other income." My question is: do I need to also report this to the Railroad Retirement Board to avoid any confusion as to where this income came from?

Answer: As a disability annuitant, the Railroad Retirement Board would only be interested in you reporting new work activity or if your earnings from employment exceed the monthly and annual limits for disability annuitants. You do not need to report earnings reflected on the 1099-C form.

But if your total earnings now exceed certain amounts ($34,000 for a single person or $44,000 for a married couple), the amount of your Tier 1 subject to federal income taxes increases from 50% to 85%, so you might need to pay more federal income tax as a result.

Important notice:

Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner or to readers. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of this and similar situations.

The law in this area changes frequently. Answers are believed to be correct as of the posting dates shown. The completeness or accuracy of a particular answer may be affected by changes in the law (statutes, regulations, rulings, court decisions, etc.) that occur after the date on which a particular Q&A is posted.

Copyright 1997-2017 Robert S. Kaufman
Related links:

(restricted access)

(restricted access)

© 2020, Inc.