RRB-1099: Railroad Retirement Board Statement
The RRB-1099 is an important tax document issued by the U.S. Railroad Retirement Board (RRB) to individuals who received railroad retirement benefits in the previous year. It serves a similar purpose to the Social Security Administration's SSA-1099 form, reporting taxable income derived from these benefits.
What is Form RRB-1099?
There are actually two forms used by the RRB for tax reporting:
A. Form RRB-1099: Reports Social Security equivalent benefits (SSEB) payments. These benefits are treated the same way as Social Security benefits for tax purposes.
B. Form RRB-1099-R: Reports non-Social Security equivalent benefits (NSSEB) payments. These include portions of Tier 1 benefits, Tier 2 benefits, vested dual benefits (VDB), and supplemental annuity benefits. They are treated as income from a qualified employee plan.
What Does the RRB-1099 Show?
A. Total Railroad Retirement Benefits: The form details the total amount of railroad retirement benefits you received throughout the tax year.
B. Taxable vs. Non-Taxable Benefits: The RRB-1099 differentiates between two types of benefits:
- Social Security Equivalent Benefit (SSEB): This portion is generally treated the same way as Social Security benefits on your tax return. The form will indicate if any of this needs to be reported as income.
- Non-Social Security Equivalent Benefit (NSSEB): This portion is considered a private pension and may be taxable depending on your overall income.
C. Repayments: The statement reflects any benefit repayments you made to the RRB during the year.
D. Federal Income Tax Withholding: The RRB-1099 shows any federal income taxes withheld from your railroad retirement benefits.
Who Receives an RRB-1099?
U.S. citizens or residents who received railroad retirement benefits in the prior year will typically receive an RRB-1099. You'll likely receive the form by early February.
How to Use the RRB-1099?
Review and Understand the Information: Carefully examine the amounts listed for both SSEB and NSSEB benefits, repayments, and any federal income tax withheld.
Determine Taxability: Use the information on the RRB-1099 along with IRS guidelines (refer to IRS Publication 915 or consult a tax professional) to determine if any portion of your railroad retirement benefits needs to be reported as taxable income on your federal tax return.
Tax Filing: When filing your tax return, you'll need the information from the RRB-1099 to report your railroad retirement benefits accurately.