Railroad Retirement Tax Rules 2026: Avoiding the "Green Form" RRB-1099-R Trap

Описание: You are a Railroad Retiree. You received a "Green Form" (RRB-1099-R) for your Tier 2 benefits. Your tax software sees it and thinks, "Oh, this is a private pension." WRONG. It automatically adds it to your State Taxable Income. This is a massive error. Under Federal Law (45 USC 231m), your Tier 2 benefits are 100% immune from State Taxes.

As The Finance Observer, I’ve performed a forensic review of the Railroad Retirement Board tax statutes. In this video, we dissect the "Two-Tier System," the "Green Form" software glitch, and the specific "Manual Subtraction" you must perform on your state return to reclaim your money.

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FORENSIC BREAKDOWN:

0:00 The "Tax Bomb": Why 500,000 Railroad Retirees are overpaying

1:15 The Anatomy Audit: Tier 1 (Social Security) vs Tier 2 (Pension)

2:00 The "Form Trap": Blue Form (RRB-1099) vs Green Form (RRB-1099-R)

2:40 The "Software Glitch": Why TurboTax treats the Green Form as taxable

3:50 The "Federal Shield": 45 USC Section 231m (The "Notwithstanding" Clause)

5:15 The Fix: How to manually enter "Subtractions from Income" on your State Return

6:00 The "Basis Recovery" Audit: Don't forget Box 3 (Tax-Free Return of Principal)

7:30 The Refund Strategy: How to amend past returns to get your money back

DISCLAIMER: I am The Finance Observer. This content is for educational purposes only. Railroad Retirement taxation involves complex Federal-State interactions; always consult a qualified CPA familiar with RRB-1099-R instructions.