Wis. Admin. Code Department of Revenue Tax 3.098

Current through November 25, 2024

Section Tax 3.098 - Railroad retirement supplemental annuities

Railroad retirement supplemental annuities paid under are exempt from the Wisconsin taxable income of their recipients.

Cr. Register, January, 1977, No. 253, eff. 2-1-77; am. Register, July, 1989, No. 403, eff. 8-1-89.

This section interprets s. 71.05(6) (b) 3, Stats.

1) The Railroad Retirement Act of 1974 as amended by P.L. 98-76 ( 45 USC s. 231m), effective August 12, 1983, provides that:

"(a) Except as provided in subsection (b) of this section and the Internal Revenue Code of 1954 [ 26 USCS §§ 1 et seq.], notwithstanding any other law of the United States, or of any State . . . no annuity or supplemental annuity shall be . . . subject to any tax. . ..

(b)(1) This section shall not operate to exclude the amount of any supplemental annuity paid to an individual under section (2) (b) of this Act [ 45 USCS § 231a(b) ] from income taxable pursuant to Federal income tax provisions of the Internal Revenue Code of 1954 [ 26 USCS §§ 1 et seq.]"

2) 45 USCS. s. 231m prohibits states from taxing railroad retirement supplemental annuity payments. Taxpayers may make a modification to federal adjusted gross income to remove this income in computing Wisconsin adjusted gross income.