Railroad Retirement Board
Increased
Federal Income Tax Withholding for Many RRB Annuitants
February 2011
TO
GOVERNING BOARD AND OTHERS
The
Railroad
Retirement Board (RRB) has adjusted the railroad retirement
benefits of over 140,000 beneficiaries to apply new Federal income tax
withholding rates. 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 in
February 2011. The new rates apply to withholding from the non-social
equivalent benefit (NSSEB) portion of tier 1, tier 2, vested dual benefits and
supplemental annuity payments. The revised tax tables will remain in use
for the remainder of 2011.
In
the absence of a request not to withhold Federal income tax
or to withhold tax at specific amounts, the RRB will withhold taxes as if the
annuitant were married and claiming 3 allowances. The annual threshold
amount for 2011 is $1,587.99. The threshold amount for 2010 was
$2,063.51.
Form
RRB W-4P, Withholding Certificate for Railroad Retirement Payments, is used by
Annuitants
who wish to adjust withholding from their NSSEB and tier II benefits, vested
dual benefits, 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. Copies of
the form are available by visiting the RRB's website
at www.rrb.gov, clicking
on "Benefit Forms and Publications," and than clicking on
"Income Tax."
Annuitants
who have questions regarding their tax liability should contact the nearest
office of the IRS or visit their website at www.irs.gov.
You also may contact your tax
preparer or accountant for further information.
Public Affairs 312-751-4777
Posted: