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BenefitsLink > Q&A Columns >

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

Answers are provided by Robert S. Kaufman

Railroad Retirement Benefits Are Taxable

(Posted February 10, 2011)

Question 798: Are rail workers' pensions tax-free?

Answer: Pensions for rail workers are not tax-free.

Most of a Railroad Retirement Annuity is taxed by the Federal government as a Social Security benefit. The remainder is taxed as a "private contributory pension." Needless to say, retired rail workers pay their share of Federal income taxes.

In addition, many states also impose an income tax.


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
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