Railroad Retirement Income (code 78)

Utah Code ยง59-10-114(2)(d)

Federal law does not permit states to tax railroad retirement income, disability income, unemployment income, and sickness benefits received from the Railroad Retirement Board and reported on form RRB-1099 (Tier I) and/or form RRB-1099-R (Tier II).

Railroad retirement income is deductible on your Utah return only if included in your federal adjusted gross income and taxed on your federal return.

Exception: Sickness benefits for an on-duty injury are excluded from federal income tax and are, therefore, automatically excluded from Utah tax.

If you received railroad retirement income under the Railroad Retirement Act and report all or part of that income on federal form 1040, lines 16b and/or 20b, or on federal form 1040A, lines 12b and/or 14b, you may deduct that amount from Utah income. If amounts from sources other than railroad retirement are included on these lines of your federal return, only deduct the amount of railroad retirement reported on these lines.

If you use your railroad retirement pension from form RRB-1099 to calculate the Utah retirement tax credit on form TC-40C for a taxpayer under age 65, do not include the amount again as a subtraction from income on Utah TC-40A, Part 2. It is generally better to take the deduction for railroad retirement income instead of the retirement income credit because the latter phases out as income increases.

Enter the allowable subtraction on Utah TC-40A, Part 2, using code 78.

Keep all forms RRB-1099 and RRB-1099-R, records and documentation to support this subtraction.

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