Tier I, tier II, and vested dual benefits payable for the period before December 1983 are not taxable. Separation Allowance Lump-Sum Amount payments; Residual Lump-Sum payments; Lump-Sum Death Payment amounts, and excess tier II employee tax refund payments are not taxable. Over-reimbursement amounts - amounts repaid to the RRB that exceed the amounts due - are paid back to annuitants as nontaxable payment amounts.
Nontaxable payment amounts are not reported on any Federal income tax statement issued by the RRB.