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2025 DEDUCTION RATES

Tier I Maximum on 2025 Earnings:              $176,100.00
Tier II Maximum on 2025 Earnings:             $130,800.00

Employees Tier I Deduction is 6.2% or $10,918.20 maximum.
Employees Tier II Deduction is 4.9% or $6,409.20 maximum.
Employees Medicare Deduction is 1.45% with no maximum.

Details on 2025 Rates are available on this link:

https://www.rrb.gov/Benefits/Forms/G-34

2024 DEDUCTION RATES

Tier I Maximum on 2024 Earnings:              $168,600.00
Tier II Maximum on 2024 Earnings:             $118,800.00

Employees Tier I Deduction is 6.2% or $10,453.20 maximum.
Employees Tier II Deduction is 4.9% or $6,129.90 maximum.
Employees Medicare Deduction is 1.45% with no maximum.

If your W-2's show that you exceed the Tier I & Tier II maximum tax rate for 2024, then you are entitled to a refund.

How is it possible I exceeded these maximums?

Example 1: You're are a BLET union representative and draw a salary or lost time wages from your union. Your combined totals from your 2024 W-2's exceed Tier I and/or Tier II maximums. You're entitled to a refund for those exceeded amounts. Tier I refunds are to be claimed on your I.R.S. Form 1040. Tier II refunds are to be claimed on I.R.S. Form 843.

Example 2: You worked for two different railroads during tax year 2024. You're combined totals from your 2024 W-2's exceed Tier I and/or Tier II maximums. You're entitled to a refund for those exceeded amounts. Tier I refunds are to be claimed on your I.R.S. Form 1040. Tier II refunds are to be claimed on I.R.S. Form 843.

For more information consult your tax advisor, the Internal Revenue Service and the Railroad Retirement Board

For more information and a link to the current IRS form 843 click here.