There are three types of employer/employee taxes for railroad employees:
- Tier I (basically the social security)
- Tier I Medicare
- Tier II (another form of withholding for retirement)
The Tier I Medicare amount (may be titled 'RRT Medicare Tax Withheld'), would be entered in Box 14 of the W-2 and would not transfer to anywhere else in the return. This amount basically represents Medicare Tax for railroad employees and the employer entered the amount in that box because railroad employers are not allowed to make entries in boxes 3, 4, 5 and 6 of Form W-2 (because those boxes are only for employees covered under the Social Security Act). This description and amount is listed on your W-2 for information purposes only and would not affect any part of your Federal or State returns.