Unemployment benefits paid under the Railroad Unemployment Insurance
Act (RUIA) are considered income for Federal income tax purposes. Each
year, the Railroad Retirement Board (RRB) sends railroad employees Form
1099-G showing the total amount of unemployment benefits paid during
the preceding calendar year. You must report that amount on your
Federal income tax return. You may file Form W-4v with the nearest RRB office if you want the RRB
to withhold Federal income tax from your benefits. To end withholding
you must file another Form W-4v with the RRB. Form W-4v is available
upon request from the Internal Revenue Service. The RUIA specifically
exempts railroad unemployment benefits from State income taxes.
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