Railroad Retirement Board
Reduced
Federal Income Tax Withholding for Many RRB Annuitants
April 2009
For Publication
April 2009
The Railroad Retirement Board (RRB) has adjusted the railroad
retirement benefits of almost 130,000 beneficiaries to apply the new Federal
income tax withholding rate as required under the American Recovery and
Reinvestment Act of 2009 (Recovery Act).
The Internal Revenue Service (IRS) revised the income tax
withholding rates and tables that are used to calculate Federal income taxes
for
The RRB implemented the new tax tables beginning with monthly
payments received on
In the absence of a request not to withhold Federal income
tax or to withhold tax at specific amounts, the RRB will withhold taxes only if
the combined portions of the NSSEB portion of tier 1, tier 2, vested dual benefit,
and supplemental annuity payments are equal to or greater than an annual
threshold amount. In that case, the RRB withholds taxes as if the
annuitant were married and claiming 3 allowances. The annual threshold
amount for 2009 had originally been set at $1,584.51. The Recovery Act
increased the 2009 threshold amount to $2,230.51.
Form RRB W-4P, Withholding Certificate For
Railroad Retirement Payments, is used by
· No Federal taxes
be withheld from their railroad retirement payments,
· Federal taxes be
withheld based on the marital status and the number of allowances they want to
claim, 0D
· An additional
amount be withheld from their railroad retirement
payments.
Annuitants who wish to adjust withholding from their NSSEB
and tier 2 benefits, vested dual benefit, and supplemental annuity payments
must complete Form RRB W-4P and send it to the RRB. An annuitant is not
required to file Form RRB W-4P.
Annuitants who have questions regarding their tax liability
should contact the nearest office of the IRS or visit their Web site at www.irs.gov.
Public Affairs 312-751-4777
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