My spouse is a retired railroad employee. I receive half of his pension. Now that I am 71, I signed up for my social security benefit on 02/12/2019. It was then I was advised payments would be retroactive for 6 months beginning with my birthday month. I also learned the RR Board needed the amount and each subsequent month certified and would be included on the RR benefit. Since this was retroactive and all RR benefits had been received for 2019, the RR would be paid back for what they paid. I received a W2 from both Social Security Administration and the railroad. Social Security sent the W2 showing the full amount. I don't want to pay taxes on the same amount but am unable to receive an answer that makes sense to me. I'm sure they knew what they are talking about. The RR Board told me they did receive the re-payment. But it was too late in the year to show the amount on the W2 and it would be adjusted for 2020.
Here is my question: Tier one includes a SS equivalent on the W2. Social Security admin sent their statement showing the total amount for the retroactive amount. I do not want to pay more in taxes than I have to. My accountant isn't sure either. Can you explain, what if anything I need to do including amending my tax return?
Hi,
I'm sorry, but I don't know the answer to your question. My expertise is limited to Social Security benefits only, and I'm unable to answer income tax questions. I assume you'll need to check with the IRS to see if they can advise you.
I can confirm that your Social Security benefits will offset your Tier 1 RR benefits dollar for dollar, but you're obviously already aware of that fact.
Best, Jerry