Use the 1099-R in UltimateTax to include RRB 1099-R income for Railroad Retirees or Railroad Retiree Beneficiaries.
The United States Railroad Retirement Board issues a Form RRB to report non-social security equivalent (NSSEB) benefits (balance of tier 1 benefits that are treated as an amount received from a qualified employee plan); any tier 2 benefit, vested dual benefit (VDB), and supplemental annuity benefit. For tax purposes, all of these are treated as an amount received from a qualified employee plan.
In most cases, the distribution reported on the RRB-1099-R can be entered on Form 1099-R in UltimateTax. However, there may be some information for which there is no place on the 1099-R. For instance, if there is an amount in Box 8-Repayment, refer to the IRS instructions, and also to help provided by the RRB at a nearby office or on the Internet at www.rrb.gov.
First, place an "X" in the box at the top of the 1099-R form in UltimateTax to indicate if the Form RRB-1099-R is for the taxpayer or spouse.
Next, move to the Payer’s ID next and fill in that number. If the number is in the EIN database, the payer’s name, Name Code, and address will be entered automatically.
In box 7, Distribution Code, enter "7."
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Federal Information from Form RRB-1099-R |
Goes here on the 1099 R in UltimateTax |
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Box 1. Claim Number and Payee Code |
This is used by the U.S. RRB and is not entered on Form 1099-R in UltimateTax. |
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Box 2. Recipient's Identification Number |
Goes in the Recipient's social security number entry on the form in UltimateTax. |
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Box 3. If "Employee Contributions" is blank (has no amount) then: |
Must be entered in both Box 1 Gross (RRB line 7) and Box 2 Taxable amount because all of the distribution the taxpayer or spouse received on this form is taxable. Note: When the amounts you enter in box 1 and box 2 match, or if the amount in box 2 is zero, UltimateTax only carries the amount to 1040, Line 4b or 1040NR, Line 17b. If the amount in box 2 is zero, UltimateTax assumes that the amount in box 1 is the taxable amount and treats it as if the amounts match. |
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If Box 3. Employee Contributions has any amount then only a portion of the amount in Box 4. Contributory Amount Paid is taxable. 1) If you know the taxable portion of the amount in Box 4 Contributory Amount Paid... 2) If you do not know the taxable portion of the amount in Box 4, but you use the Simplified General Rule to determine the taxable portion of the amount in Box 4, then enter the total amount from Box 7. Total Gross Paid... |
1)Then enter the taxable portion of the amount in Box 2 Taxable amount and do not make any entries in the Simplified General Rule Section at the bottom of the form in UltimateTax. That section is only used if you want UltimateTax to calculate the excluded amount using the Simplified General Rule. The taxable amount you enter on Line 2 will be carried to the 1040, Line 16b or 1040NR, Line 17b, whichever is used. 2)In Box 1 Gross (RRB line 7) |
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Boxes 5 and 6 are fully taxable and are included in the amount in Box 7. Therefore, they are not entered in UltimateTax. |
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Box 8. Repayments |
If there is any amount in this box refer to the official IRS or RRB instructions to determine the taxable amount. See the note above this table about getting additional information. |
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Box 9. Federal Income Tax Withheld amount... |
...in any case, goes in Box 4. |
Solution Article:
Railroad Benefits (RRB-1099)
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