Christian Posted April 3, 2022 Report Share Posted April 3, 2022 A client who is a railroad employee had some disabling health issues in 2021 and has been unable to return to active employment. The company has awarded him a disability pension paying both Tier 1 and Tier 2 benefits. His wife informs me that he is not retired and expects to return to work in time. Apparently he is not considered retired by the company. Ordinarily when an employee begins drawing a pension I prepare the Simplified Employee Worksheet to calculate the tax free portion of his Tier 2 benefit but since he has not been adjudged retired I expect to show the full Tier 2 benefit as federally taxable. I believe this to be the correct way to handle this until he is given a formal date of retirement. Quote Link to comment Share on other sites More sharing options...
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