How is tier 1 and tier 2 railroad retirement income treated on the federal and California tax returns?

On the federal return:

Tier 1 and tier 2 railroad retirement income are both treated the same as pension income. Both are taxable on the California return.

Tier 1 and tier 2 railroad retirement income are both treated the same as social security benefits. The same is true on the California return.

Tier 1 railroad retirement income is treated the same as social security benefits, and tier 2 is treated as pension income. Neither are taxable on the California return.

Tier 1 railroad retirement income is treated the same as social security benefits, and tier 2 is treated as pension income. The same is true on the California return.

Answer rating: 100% (QA)

Answer C Tier 1 railroad retirement income is treated the same as social se... View the full answer