Benefits paid under the Railroad Retirement Act fall into two categories. These categories are treated differently for income tax purposes. When reporting Railroad Retirement Benefits in the program, a dual entry is required.
Reporting Railroad Retirement Benefits in the tax program:
From the Main Menu of the Tax Return (Form 1040) select:
- Income Menu
- IRA/Pension Distributions (1099R, RRB-1099-R,8930)
- Select ‘New’ or double-click the entry you wish to ‘Edit’
- Choose either Taxpayer or Spouse (if it applies)
- Select the box in the top right hand corner of the Form 1099-R data entry screen (RRB-1099-R)
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- Your screen should now look like this:
Enter all data from Form RRB-1099-R or Form 1042-S
If there is amount in Box 4, the Taxpayer may be eligible to compute a tax-free Simplified General Rule Worksheet. If so, select the Box 7a (SGR). You will be asked ‘Would you like to use the Simplified General Rule Worksheet?’ – Answer ‘YES’
Editing Form 1099-R / Form RRB-1099-R Entry in the tax program:
From the Main Menu of the Tax Return (Form 1040) select:
- Income Menu
- IRA/Pension Distributions (1099R, RRB-1099-R,8930)
- Select the entry and select ‘Edit’ or double-click the entry you wish to ‘Edit’.
- Adjust the information as needed.
Deleting A Form 1099-R / Form RRB-1099-R Entry in the tax program:
From the Main Menu of the Tax Return (Form 1040) select:
- Income Menu
- IRA/Pension Distributions (1099R, RRB-1099-R,8930)
- Select the entry and select the ‘Delete’ button.
- You will be asked if you wish to ‘Delete Form for……..?’
- Select ‘YES’
- The Form will be deleted.
Sample Form RRB-1099-R
Sample Form RRB-1042S
