1.007 -Exemption of Railroad Retirement Benefits

Item	Description	FY2008	FY2009	FY2010
1.007	Exemption of Railroad Retirement Benefits Railroad retirement benefits are not taxed. (Massachusetts has not adopted Internal Revenue Code section 86, which taxes some of these benefits if a taxpayer's income is above a certain level.) Comment: No adjustment is made for any prior payments taxpayers may have made to fund this system since employee payments to this system are taxes rather than contributions. No adjustment is made for any prior payments taxpayers may have made to fund this system since employee payments to this system are taxes rather than contributions. Origin: M.G.L. c. 62, S. 2(a)(2)(H) Estimate: $4.4	4	4.3	4.4

Key:

ORIGIN
IRC	Federal Internal Revenue Code (26 U.S.C.)
U.S.C	United States Code
M.G.L.	Massachusetts General Laws
Rev. Rul.; C.B.	Revenue Ruling; Cumulative Bulletin of the U.S. Treasury
ESTIMATES	All estimates are in $ millions.