Form RRB-1099, Payments by the Railroad Retirement Board 2012

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Form RRB-1099, Payments by the Railroad Retirement Board 2012

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Form RRB-1099 Payments by the Rairoad Retirement Board 2012

This section explains the items shown on Form RRB-1099. Form RRB-1099 is issued to citizens and residents of the United States. If you received, repaid, or had tax withheld from the social security equivalent benefit (SSEB) portion of tier 1 railroad retirement benefits or special guaranty benefits during 2012, you will receive Form RRB-1099.

If you received, repaid, or had tax withheld from any non-social security equivalent benefit (NSSEB) portion of tier 1, tier 2, vested dual benefits or supplemental annuity benefits during 2012, you will receive Form RRB-1099-R, Annuities or Pensions by the Railroad Retirement Board. For more information concerning Form RRB-1099-R, see Publication 575.

Each beneficiary will receive his or her own Form RRB-1099. If you receive benefits on more than one railroad retirement record, you may get more than one Form RRB-1099. To help insure that you get your form timely, make sure the RRB always has your current mailing address.

Box 1—Claim Number and Payee Code

Your RRB claim number is a six- or nine-digit number preceded by an alphabetical prefix and is the number under which the SSEB portion of tier 1 benefits or special guaranty benefits were paid. Your payee code is the number following your claim number and is used by the RRB to identify you under your claim number. In all your contacts with the RRB, be sure to use the claim number and payee code shown in this box.

Box 2—Recipient's Identification Number

This is the U.S. social security number (SSN), individual taxpayer identification number (ITIN), or employer identification number (EIN), if known, for the person or estate listed as the recipient.

Box 3—Gross Social Security Equivalent Benefit Portion of Tier 1 Paid in 2012

The figure shown in this box is the gross SSEB portion of tier 1 benefits or special guaranty benefits paid to you in 2012. It is the amount before any deductions were made for:

  • Federal income tax withholding,

  • Medicare premiums,

  • Legal Process Garnishment payments,

  • Overall minimum assignment payments,

  • Recovery of an overpayment, including recovery of Railroad Unemployment Insurance Act benefits received while awaiting payment of your railroad retirement annuity, and

  • Workers' compensation offset (explained in the description of box 6, later).

The figure in box 3 is the amount after any deductions were made for:

  • Social security benefits,

  • Age reduction,

  • Public service pensions or public disability benefits,

  • Dual railroad retirement entitlement under another RRB claim number,

  • Work deductions,

  • Actuarial adjustment,

  • Annuity waiver, and

  • Legal Process Partition payments.

Social security benefits paid through the RRB are not reported on Form RRB-1099 or RRB-1042S. They are reported on Form SSA-1099 or Form SSA-1042S issued by the SSA.

Example 1.

For the period January through March 2012, you received $300 ($100 × 3 months) Railroad Unemployment Insurance. You were eligible for the SSEB portion of tier 1 benefits of $509 a month beginning January 1, 2012, but you did not receive your first payment until April 2012. The payment you received in April was for the first 3 months of 2012. However, because you received unemployment benefits during the same period, $300 was deducted from your initial benefit payment. Instead of receiving $1,527 ($509 × 3 months), you received $1,227 ($1,527 − $300). For the months of April through November, you were paid your regular monthly SSEB portion of tier 1 benefits of $509. Box 3 of your Form RRB-1099 will show $5,599 ($509 × 11 months) as the gross SSEB portion of tier 1 benefits paid to you in 2012, even though you did not actually receive that amount. This is because box 3 shows the gross amount of your benefits before any reductions were made for the unemployment benefits paid to you.

Example 2.

You received tier 1 benefits of $600 a month for the months of December 2011 through May 2012. Your $600 monthly tier 1 benefits consist of an SSEB portion of $250 and a non-social security equivalent benefit (NSSEB) portion of $350. Beginning in June 2012, you became entitled to Medicare, and $99.90 a month was deducted from your benefit checks for Medicare premiums. Therefore, the tier 1 payments you received for the rest of the year were $500.10 ($600 − $99.90) a month. Box 3 of your Form RRB-1099 will show the gross SSEB portion of tier 1 benefits of $3,000 ($250 × 12 months), because it is the gross SSEB amount before deductions for your Medicare premiums. Box 11 of your Form RRB-1099 will show your Medicare premiums of $599.40 ($99.90 × 6 months) deducted from June through November 2012. The remainder of your tier 1 payments, the NSSEB portion of $4,200 ($350 × 12 months), will be shown on the Form RRB-1099-R that you will receive along with your Form RRB-1099. The $4,200 is the gross NSSEB amount before deductions for your Medicare premiums. (The Medicare Premium Total box shown on your Form RRB-1099-R will be blank because the Medicare total will be shown in box 11 of your Form RRB-1099.) For more information on Form RRB-1099-R, see Publication 575.

Benefits paid for earlier years. The figure in box 3 includes any lump-sum benefit payment you received in 2012 that is for an earlier year after 1983. If you received a payment for an earlier year, it will be shown in box 7, 8, or 9 (described later). See Lump-Sum Election , earlier, for information on how to treat the payment.

Box 4—Social Security Equivalent Benefit Portion of Tier 1 Repaid to RRB in 2012

The figure shown in this box is the total SSEB portion of tier 1 benefits you repaid to the RRB in 2012. You may have repaid a benefit by returning a payment, making a cash refund, or having an amount withheld from your payments. In addition, an amount may have been withheld from your benefits to recover the SSEB overpayment incurred by someone else who is also receiving benefits under your claim number. Also, an amount may have been withheld from another benefit, such as a social security benefit, to recover an SSEB overpayment you received.

The amount in box 4 also includes any SSEB benefits you repaid in 2012 that were for 2012 or for 1 or more years before 2012. All tier 1 repayments for years before 1986 are treated entirely as SSEB benefits.

Example 1.

You returned to work for your last railroad employer for the months of June through August 2012. The SSEB portion of your tier 1 benefits was $450 for each of those months. Since you are not allowed to receive benefits for any month you returned to railroad service, you have to make a repayment to the RRB. You returned the benefit payment for June through August 2012. Box 4 of your Form RRB-1099 will show $1,350 ($450 × 3 months) as the SSEB portion of tier 1 benefits you repaid to the RRB.

Example 2.

From January through April 2012 you were overpaid $800 in the SSEB portion of tier 1 benefits. From May through August 2012, $200 a month was withheld from your benefit payment to fully recover the $800 overpayment. Box 4 of your Form RRB-1099 will show $800 ($200 × 4 months) as the SSEB portion of tier 1 benefits you repaid to the RRB.

Example 3.

As a retired railroad employee, you have been receiving a railroad retirement annuity, including an SSEB portion of tier 1 benefits, since 2011. You also became entitled to, and received from the SSA, a social security benefit of $300 a month beginning May 1, 2012. SSA later authorized the RRB to pay that benefit. In August 2012, the RRB began paying your social security benefit to you and reduced the SSEB portion of your monthly tier 1 benefit by $300. Social security benefits of $900 ($300 × 3 months) covering the period May through July 2012 were kept by the RRB to offset your $900 SSEB overpayment for that same period. Box 4 of your Form RRB-1099 will show $900 as the SSEB portion of tier 1 benefits you repaid to the RRB. (Note. SSA will send you Form SSA-1099, which will include the $900 in benefits paid by them for the months of May through July 2012.)

Box 5—Net Social Security Equivalent Benefit Portion of Tier 1 Paid in 2012

The figure shown in this box is the net amount of the SSEB portion of tier 1 benefits paid to you in 2012. It is the result of subtracting the amount in box 4 from the amount in box 3. If you received more than one Form RRB-1099 for 2012, you should add the amounts in box 5 of all Forms RRB-1099 to determine your net amount of SSEB payments for 2012. Use this amount to determine if any of your benefits are taxable. See Are Any of Your Benefits Taxable , earlier.

If parentheses are around the figure in box 5, it means that the figure in box 4 is larger than the figure in box 3. This is a negative figure and means you repaid more money than you received in 2012. For more information, see Repayments More Than Gross Benefits , earlier.

Box 6—Workers' Compensation Offset in 2012

The figure shown in this box is the amount you received in workers' compensation benefits during the year that was used to offset the full amount of your tier 1 payments. The SSEB portions of your tier 1 benefits shown in boxes 3 and 5 include amounts by which your SSEB payments were reduced for workers' compensation benefits. Your workers' compensation amount is shown in this box separately only for your information. If you did not receive workers' compensation benefits, box 6 is blank.

Example.

For 2012, your tier 1 benefit of $450 a month is reduced to $400 because of a $50-a-month workers' compensation offset. Boxes 3 and 5 of your Form RRB-1099 will show $5,400 ($450 × 12 months) as the SSEB portion of tier 1 benefits paid to you by the RRB. The $5,400 is the amount before any deductions were made for the workers' compensation offset. Box 4 will show zero because you did not make any repayments during the year. Box 6 of your form will show $600 ($50 workers' compensation × 12 months). In figuring if any of your benefits are taxable, you must use $5,400 (box 5) as the amount of the SSEB portion of tier 1 benefits paid to you.

Boxes 7 and 8—Social Security Equivalent Benefit Portion of Tier 1 Paid for 2011 or 2010

The figure shown in each applicable box is the amount of SSEB benefits paid to you in 2012 that was for 2011 or 2010. This amount is included in the amount shown in box 3.

Box 9—Social Security Equivalent Benefit Portion of Tier 1 Paid for Years Prior to 2010

The figure shown in this box is the amount of SSEB benefits paid to you in 2012 that was for 2009 and earlier years after 1983. This amount is included in the amount shown in box 3. Any tier 1 benefit paid for a period before 1986 is treated as SSEB.

Box 10—Federal Income Tax Withheld

The figure shown in this box is the total amount of U.S. federal income tax withheld on your 2012 tier 1 SSEB or special guaranty benefit payments. This total is based on the amount of SSEB tax withholding requested on IRS Form W-4V, Voluntary Withholding Request. Include this amount on your income tax return as tax withheld.

Box 11—Medicare Premium Total

This is the total amount of Part B, Part C and/or Part D Medicare premiums deducted from your railroad retirement annuity payments shown on your Form RRB-1099.