Railroad retirement benefits

A subtraction is allowed for any annuities or supplemental annuities paid by the U.S. Railroad Retirement Board that are included in an individual’s federal taxable income. Railroad retirement benefits that are eligible for the subtraction include:

Tier I and Tier II benefits;

vested dual benefits; and

supplemental annuities.

Railroad retirement benefits are reported on Form RRB 1099 and Form RRB-1099-R. The subtraction is limited to those benefits that are included in an individual’s federal taxable income, which may be less than the full amount of benefits reported on Form RRB 1099 and Form RRB-1099-R. For additional information, please see Department publication Income Tax Topics: Social Security, Pensions, and Annuities .