Tax withholding and railroad retirement payments rrb.gov e sampark electricity bill payment

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Regular railroad retirement annuities consisting of tier I, tier II, and vested dual benefit components, have been subject to United States Federal income tax since 1984. Supplemental annuities have been subject to Federal income tax since 1966.

The portion of the tier I component of a railroad retirement annuity that is equivalent to what the Social Security Administration would pay if railroad service were covered under the Social Security Act is treated the same as a Social Security benefit for Federal income tax purposes. Special guaranty amounts paid to some railroad retirement beneficiaries are also treated like Social Security benefits for Federal income tax purposes. The portions of a railroad retirement annuity that are taxable the same as Social Security benefits are generally referred to as social security equivalent benefits (SSEB).

You can choose to have taxes withheld from the SSEB portion of your railroad retirement annuity by filing IRS Form W-4V. File the completed form at any Railroad Retirement Board (RRB) office. Forms W-4V are available at any IRS offices. The RRB will not withhold taxes from the SSEB portion of your annuity unless you file IRS Form W-4V.

The non-social security equivalent benefit (NSSEB) portion of tier 1 benefits, tier 2 benefits, vested dual benefits, and supplemental annuity payments are considered taxable income regardless of the amount of any other income you may have. These portions of your annuity are subject to Federal income tax withholding. If you file Form RRB W-4P to have taxes withheld based on your marital status and tax withholding allowances, we will withhold taxes from these portions of your annuity. We will not withhold taxes from the SSEB portion of your annuity unless you also file IRS Form W-4V.

You are not required to file a Form RRB W- 4P. However, if you do not file and your combined taxable NSSEB, tier II, vested dual benefit, and supplemental annuity components of your monthly railroad retirement annuity exceed $2005.40 we will automatically withhold taxes as if you were married and claiming three allowances.

File Form RRB W- 4P no earlier than 6 months before the date your annuity is subject to tax withholding. We will adjust your withholding according to your RRB W- 4P request. Your request remains in effect until you change or cancel it with a new Form RRB W- 4P. You may file a new Form RRB W- 4P at any time. The adjustment to your payment will serve as notification that your request is in effect.

Answer "NO" if you do not want Federal income tax withheld from your railroad retirement payments. If you answer "NO" to item 6, remember that having no tax withheld from your annuity payments does not reduce the amount of the taxes you may owe. There are penalties for not paying enough tax during the year, either by tax withholding or by estimated tax payments. Internal Revenue Service Publication 505, Tax Withholding and Estimated Tax, explains estimated tax payments and penalties in detail.

Enter the number of withholding allowances you claimed in item 8. Use the worksheets on pages 5 and 6 to figure the number of your allowances. Generally, the more allowances you claim, the less tax is withheld. If you have more than one pension or annuity or if your spouse also has a pension or annuity, you may claim all of your allowances on one Form RRB W-4P or you may claim some on each Form RRB W-4P, but you may NOT claim the same allowances more than once. Your withholding will usually be more accurate if you claim all allowances on the Form RRB W-4P for the largest payment and claim zero on all other Forms RRB W-4P.

Answer "Yes" if you want an additional dollar amount withheld from your monthly benefits. This additional amount, which is computed on line 1 of the Multiple Pensions/More Than One Income Worksheet on page 6 will be added to any tax withholding amount computed based on the marital status and number of allowances you have entered in items 7 and 8 of Form RRB W- 4P.

Enter the additional dollar amount you want withheld from each annuity payment. This includes all accrual payments regardless of the amount of the accrual. Use the amount from line 1 of the Multiple Pensions/More Than One Income Worksheet on page 6. Show whole dollars. Do not show cents.

Each payment you receive will be taxed based on what you claim on your RRB W- 4P. This includes accrual payments. If what you claimed on your RRB W-4P along with item 10 (additional amount) is more than the accrual payment we will also withhold the entire accrual payment. Even, if the tax withholding amount calculated is more than the accrual payment, we cannot withhold any portion of your SSEB, unless IRS Form W- 4V is filed with the RRB.

No later than January 31 following the tax year, you will receive a statement showing the total annuity payments made to you during the preceding calendar year. This statement also shows the total amount of any taxes withheld from your payments. Use this statement to complete any income tax return you must file with the Internal Revenue Service for the tax year.

You may request a refund of any excess taxes withheld by filing an income tax return with the Internal Revenue Service after the end of the tax year. If you decide that too much tax is being withheld from your railroad retirement benefits, you can request a change in your withholding by filing a new Form RRB W- 4P and/or Form W-4V.

Contact the nearest office of the Internal Revenue Service if you need more information about taxation, tax withholding, your personal tax obligations, or if you need help completing Form RRB W- 4P. Contact the nearest office of the RRB for any information you need about your railroad retirement payments. The RRB’s nationwide toll-free telephone number is 1-877-772-5772.

Under Section 504 of the Rehabilitation Act of 1973 and RRB regulations, no qualified person may be discriminated against on the basis of disibility. RRB programs and activities must be accessible to all qualified applicants and beneficiaries including those who are vision or hearing-impaired. Disabled persons needing assistance should contact the nearest RRB office. Complaints of alleged discrimination by the RRB on the basis of disability must be filed within 90 days in writing with the Director of Administration

The information requested on Form RRB W-4P is required to carry out the Internal Revenue laws of the United States. The Internal Revenue Code requires this information under section 3405(e) and 6109 of their regulations. Failure to provide this information may result in inaccurate withholding on your payment(s). Routine uses of this information include giving it to the Department of Justice for civil and criminal litigation, and to cities, states and the District of Columbia for use in administering their tax laws. You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103.