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I worked for Multiple Railroads and Overpaid my Railroad Retirement Taxes Thumbnail

I worked for Multiple Railroads and Overpaid my Railroad Retirement Taxes

Video Taxes


Railroad Retirement Mailbag: How to Recover Overpaid Tier I and Tier II Taxes

In this edition of the Highball Advisors Railroad Retirement Mailbag, we address a common question from railroad employees who work for more than one railroad in the same year.

Question: “I worked for two different railroads this year, and my Tier I and Tier II contributions were reset. I know I overpaid. How do I get that money back?”

This is a great question—and one we see often.

Step 1: Confirm the Overpayment

Start by reviewing your W-2 forms from each railroad employer. These will show how much Tier I and Tier II tax was withheld. You will also receive RRB-1099 and RRB-1099-R forms, which summarize your Railroad Retirement tax contributions.

Tier I and Tier II taxes are subject to annual wage bases. If your combined earnings exceed those limits and both employers continued withholding, you likely overpaid.

  • Tier I is capped at the annual Social Security wage base.
  • Tier II has its own annual earnings limit.

Once your combined income exceeds these thresholds, additional withholding is considered an overpayment.

Step 2: Recovering Tier I Overpayments

Tier I overpayments are the easier of the two to recover. You can claim the excess directly on your Form 1040 when filing your federal income tax return. There is a designated line for excess Railroad Retirement or Social Security tax withheld.

Step 3: Recovering Tier II Overpayments

Tier II refunds require a separate process. To recover overpaid Tier II tax, you must file IRS Form 843 (Claim for Refund and Request for Abatement). This process can take additional time, so patience is important.

Additional Help

For a detailed walkthrough, watch our video “Steps to Take if You’ve Overpaid Railroad Retirement and Social Security Taxes.” It covers common pitfalls and explains the process in greater depth.

If you have a question you’d like answered in a future mailbag, feel free to reach out. We’re always happy to help railroaders better understand their benefits and taxes.

Stay safe, stay on track, and take care.

— John McNamara, Highball Advisors

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Disclaimer: This article is provided for general information and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. Highball Advisors encourages you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Highball Advisors, and all rights are reserved from Highball Advisors, and all rights are reserved.