Federal law does not allow states to tax railroad retirement income, which has been reported on Form RRB 1099 as Tier I or Form RRB 1099-R as Tier II income.
If railroad retirement pensions are included in the retirement income deduction on TC-40B, do not deduct again under other deductions. Conversely, railroad retirement benefits deducted under "other deductions" cannot be included in the"retirement income deduction." It generally is more beneficial to take the deduction for railroad retirement income instead of the retirement income deduction because the latter phases out as income increases.
If you received pension payments under the Railroad Retirement Act and are required to report all or part of the amount received (Tier I, Tier II, or both) as income on federal form 1040 or 1040A, you may deduct that amount from Utah income.
Equitable adjustments are limited to items required to be included in federal adjusted gross income in the current year that were required to be included in the taxable income for state purposes only (but not federal purposes) in a prior year.
