CSX Retirement Tax Distribution

You received a letter because you are eligible for a refund of overcollected Railroad Retirement Taxes (RRT).

The United States District Court is expected to enter into an order directing that certain relocation benefits are not subject to Railroad Retirement Taxes. CSX filed refund claims on behalf of itself and its employees to receive a refund of these overcollected RRT for the years 2009 through 2021.

Certain current and former CSX employees who had certain relocation benefits taxed during the years 2009 through 2021 are eligible. However, not everyone who received relocation benefits is eligible for a refund.

The Internal Revenue Service will only issue your refund if CSX obtains your consent. In effect, the Internal Revenue Service needs your permission to send you a refund. If you consent, the Internal Revenue Service will send your refund to CSX, and we will distribute it to you. If you do not consent, the Internal Revenue Service will not issue you a refund.

Yes. CSX previously solicited refund consents on a separate matter and those refunds have been paid. Please do not ignore the current consent, as the prior consent is not applicable to this refund request.

The Railroad Retirement Board (“RRB”) has not yet determined if a refund of Tier I or Tier II taxes will impact benefits. You should monitor the Railroad Retirement Board website at RRB.gov for further updates. The RRB has confirmed that a refund of Medicare taxes will not impact Medicare benefits.

The Internal Revenue Service needs this information to match you with the refund amount calculated for you. CSX also needs this information to make sure you get the correct refund.

The refund itself will not be taxable for federal tax purposes but may be taxable in your state of residence. The Internal Revenue Service will pay you interest on each year’s refund based on the federal short-term interest rates. The interest will be taxable in the year you receive the refund. If your total interest received is $600 or greater, CSX will send you a Form 1099-INT indicating the taxable amount. You are encouraged to consult your tax advisor to better understand how this impacts your individual circumstances.

The Internal Revenue Service pays interest on tax refunds from the year the taxes were originally withheld through the date the taxes are refunded.

CSX will issue Form W-2C for all impacted years.

The Internal Revenue Service will reject your consent, and CSX will be unable to obtain your refund for you.

You are not required to continue to be a CSX employee to receive the refund.

We expect it will take several months from the time you mail your consent form until you receive your refund. This time is necessary for both CSX and the Internal Revenue Service to verify your consent. After verification, the Internal Revenue Service will mail the employees’ refunds to CSX for distribution to eligible employees. CSX will work with the Internal Revenue Service to expedite the refunds.

Yes.

A deceased employee’s beneficiary is entitled to the refund. A copy of the death certificate and proof that the individual claiming the refund is the beneficiary will be required. A copy of the will, a court order, or similar documentation to prove the beneficiary’s identity (as well as the beneficiary’s address and telephone number) should be sent with the consent.

If the employee is incapacitated, a copy of the power of attorney will be required to issue the refund accordingly.

We may contact the beneficiary or guardian to obtain signatures on additional paperwork after we have received these documents relating to a deceased or incapacitated employee.

If your income exceeded certain limits from 2013 onward, you may have incurred an additional Medicare tax of 0.9% on your personal income tax return. You may be entitled to an additional refund of any Medicare tax paid on your relocation benefit for open years. Unfortunately, Internal Revenue Service procedures do not allow CSX to request refunds of Additional Medicare Tax on your behalf. Please consult your tax advisor to better understand if this applies to your personal tax liability for those years.

The Additional Medicare Tax is a 0.9% surtax that took effect in 2013. It generally applies to compensation over certain threshold amounts: $250,000 for married persons filing jointly; $125,000 for married persons filing separately; and $200,000 for single taxpayers.

If you paid the Additional Medicare Tax, your original tax return will contain amounts on both Line 62 of Internal Revenue Service Form 1040 and Line 17 of Internal Revenue Service Form 8959.

If you paid Additional Medicare Tax on your tax returns between 2013 and 2021, you may be eligible to claim a refund of tax by filing an amended federal income tax return. We recommend you consult with your tax advisor to confirm your eligibility for a refund and assist you in filing amended tax returns.

If you have questions not addressed on this website, you may contact the CSX Retirement Tax Distribution Administrator by telephone at 1-844-746-4690 or by email at info@CSXRelocationTaxRefund.com.