Indiana Railroad Retirement Question

[photoman]

This is my first RRB-1099-R for the season. I know how to handle entering the information, but when I look at the Indiana return it is giving a credit for the amount of pension received on Sch 2 . In reading the Indiana manual it says they do not tax Railroad Retirement. The Drake software is giving a credit for this retirement amount on the Indiana side. It seems in the past this is how it should be done . This is a first time customer and the folks that did the return gave just credit for SocSecurity Equivalent and not the Pension part last year.

Does Indiana give credit on both the amounts. Does anyone know.

Thanks,

Ron

[Larmil]

This is my first RRB-1099-R for the season. I know how to handle entering the information, but when I look at the Indiana return it is giving a credit for the amount of pension received on Sch 2 . In reading the Indiana manual it says they do not tax Railroad Retirement. The Drake software is giving a credit for this retirement amount on the Indiana side. It seems in the past this is how it should be done . This is a first time customer and the folks that did the return gave just credit for SocSecurity Equivalent and not the Pension part last year.

Does Indiana give credit on both the amounts. Does anyone know.

Thanks,

Ron

Federal law - NO state can tax any benefits from the RRB - even unemployment.

[photoman]

Thanks for the information.

Ron

[Nashville]

Hypocrisy

Federal law - NO state can tax any benefits from the RRB - even unemployment.

Larmil if this is true, I am amazed at how the Fed can pass something like this but then tax RRB and unemployment for Federal purposes.

Not that I'm in favor of any state having more taxes, but we would have a much better Federal government if they would live with the same laws they inflict on everyone else.

[Larmil]

Larmil if this is true, I am amazed at how the Fed can pass something like this but then tax RRB and unemployment for Federal purposes.

Not that I'm in favor of any state having more taxes, but we would have a much better Federal government if they would live with the same laws they inflict on everyone else.

This is not in the Internal Revenue Code- Title 26 USC. It is in the Railroads Code - Title 45 USC.

[Nashville]

Railroad Code

Wow. Congress gave them their own exemption under the RR Chapter!!

Not long ago I saw a video clip of President F D Roosevelt in 1936 promising that Social Security would "NEVER be taxable..."