Railroad Retirement Board Benefits Subtraction

You qualify if your federal adjusted gross income includes Tier 1 or Tier 2 RRB benefits.

• Tier 1 benefits are reported to you on Form RRB-1099, similar to the Social Security Administration’s SSA-1099. Tier 1 benefits are subject to federal tax under the Social Security benefit rules. Depending on your income level, however, these benefits may not be taxed on your federal return.
• Tier 2 benefits are traditional pension benefits and are reported to you on Form RRB-1099-R. At least a portion of these benefits is taxable at the federal level under the federal pension and annuity rules.

Note: A pension you receive directly from a railroad company does not qualify for this subtraction.

For more information, see Income Tax Fact Sheet 6 - Seniors.