CT-2 Employee Representative's Quarterly Railroad Tax Return

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TREASURY/IRS AND OMB USE ONLY DRAFT

CT-2

Form
(Rev. March 2026)

Employee Representative’s Quarterly Railroad Tax Return

Taxable compensation paid during this quarter subject to Tier 1 tax

.

$

× 12.4% (0.124)

1

2

Taxable compensation paid during this quarter subject to Tier 1
Medicare tax . . . . . . . . . . . . . . . . .

$

×

2.9% (0.029)

2

Taxable compensation paid during this quarter subject to Tier 1
Additional Medicare Tax . . . . . . . . . . . . . .

$

×

0.9% (0.009)

3

4

Taxable compensation paid during this quarter subject to Tier 2 tax

.

$

× 13.1% (0.131)

4

5

Credit (attach explanation in duplicate) .

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5

6

Total taxes for quarter (add lines 1 through 4; subtract line 5). See instructions for payment details

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Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is
true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Signature

Date

T
FF
FP

Paid
Preparer
Use Only

Print/Type preparer’s name

I
T

Return for Calendar Quarter
(Months and year)

Employee representative’s name, address, and social security number, and name of organization
represented.
Preparer’s signature

Date

ORIGINAL
Check
if
self-employed

Firm’s name

PTIN

Firm’s EIN

Firm’s address

Phone no.

For Privacy Act and Paperwork Reduction Act Notice, see page 3.

Form CT-2 (Rev. 3-2026)

Cat. No. 16030S

Don’t cut or separate the forms on this page.

CT-2

Form
(Rev. March 2026)

Employee Representative’s Quarterly Railroad Tax Return

OMB No. 1545-0029

Department of the Treasury
Internal Revenue Service

1

Taxable compensation paid during this quarter subject to Tier 1 tax

.

$

× 12.4% (0.124)

1

2

Taxable compensation paid during this quarter subject to Tier 1
Medicare tax . . . . . . . . . . . . . . . . .

$

×

2.9% (0.029)

2

Taxable compensation paid during this quarter subject to Tier 1
Additional Medicare Tax . . . . . . . . . . . . . .

$

×

0.9% (0.009)

3

4

Taxable compensation paid during this quarter subject to Tier 2 tax

.

$

× 13.1% (0.131)

4

5

Credit (attach explanation in duplicate) .

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.

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5

6

Total taxes for quarter (add lines 1 through 4; subtract line 5). See instructions for payment details

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6

3

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File this DUPLICATE copy with the ORIGINAL return.

Employee representative’s name, address, and social security number, and name of organization
represented exactly as shown on ORIGINAL above.
For Privacy Act and Paperwork Reduction Act Notice, see page 3.

Return for Calendar Quarter
(Months and year)

Cat. No. 16030S

DUPLICATE

Form CT-2 (Rev. 3-2026) Created 12/5/25

DRAFT — DO NOT FILE

1

3

DRAFT — DO NOT FILE

OMB No. 1545-0029

Complete both copies of Form CT-2.
Go to www.irs.gov/CT2 for the latest information.

Department of the Treasury
Internal Revenue Service

TREASURY/IRS AND OMB USE ONLY DRAFT
Page 2

Form CT-2 (Rev. 3-2026)

Section references are to the Internal Revenue Code unless
otherwise noted.

Future Developments
For the latest information about developments related to Form
CT-2 and its instructions, such as legislation enacted after they
were published, go to www.irs.gov/CT2.

What’s New

Electronic payments. The IRS recommends paying
electronically whenever possible. Options to pay your Form
CT-2 taxes electronically include using the Electronic Federal
Tax Payment System (EFTPS) or IRS Direct Pay. Effective
October 17, 2025, Form CT-2 filers won’t be able to create new
EFTPS accounts. If you weren’t enrolled in EFTPS by October
17th, pay using IRS Direct Pay. For more information about
making a payment, see the instructions for line 6, later.

Reminders
Tier 1 Additional Medicare Tax. In addition to the Tier 1
Medicare tax of 2.9%, employee representatives are subject to
0.9% Additional Medicare Tax on compensation in excess of
$200,000, beginning in the pay period in which your
compensation for the calendar year exceeds $200,000. If you
pay any Additional Medicare Tax during the year, you must
complete and file Form 8959, Additional Medicare Tax, with
your federal income tax return. See the Instructions for Form
8959. For more information on Additional Medicare Tax, go to
www.irs.gov/ADMTfaqs.

Due dates for filing Form CT-2 and paying the tax each quarter
are as follows.
Quarter covered:
January, February, March
April, May, June
July, August, September
October, November, December

Due by:
May 31, 2026
August 31, 2026
November 30, 2026
February 28, 2027

If any due date shown above falls on a Saturday, Sunday, or
legal holiday, you may file your return and pay the tax on the
next business day. The term “legal holiday” means any legal
holiday in the District of Columbia. If we receive Form CT-2 after
the due date, we will treat Form CT-2 as filed on time if the
envelope containing Form CT-2 is properly addressed, contains
sufficient postage, and is postmarked by the U.S. Postal Service
on or before the due date, or sent by an IRS-designated private
delivery service (PDS) on or before the due date. If you don’t
follow these guidelines, we will consider Form CT-2 filed when it
is actually received. See Pub. 15 for more information on legal
holidays. Go to www.irs.gov/PDS for the current list of PDSs.
For the IRS mailing address to use if you’re using a PDS, go to
www.irs.gov/PDSstreetAddresses.

Where To File
Form CT-2 contains two copies. Be sure to make an additional
copy of Form CT-2 for your records. Send both the ORIGINAL
and DUPLICATE to the Department of the Treasury, Internal
Revenue Service Center, Kansas City, MO 64999-0049.

Penalties and Interest

General Instructions

The law provides a penalty for late filing or late payment unless
you can show reasonable cause for the delay. If you’re late in
filing a return or paying the taxes, send an explanation with the
return. Interest is charged on taxes paid late at the rate set by
law.

Purpose of Form

Records

Use this form to report railroad retirement taxes imposed on
compensation received by employee representatives.

You must keep records relating to employee representative
taxes for at least 4 years after the taxes are due or were paid,
whichever is later.

Railroad retirement taxes. The Railroad Retirement Tax Act
imposes taxes on an employee representative, which are based
on compensation.
These taxes are comprised of Tier 1 and Tier 2 taxes. The
amount of compensation subject to each tax is different.
The Tier 1 tax rate is 12.4%. It applies only to the first
$184,500 paid to you during 2026 for services performed as an
employee representative. The Tier 1 Medicare tax rate is 2.9%.
It applies to all compensation paid to you during 2026 for
services performed as an employee representative. The Tier 1
Additional Medicare Tax is 0.9%. It applies to compensation
paid to you during 2026 that exceeds $200,000 for services
performed as an employee representative.
The Tier 2 tax rate on employee representatives is 13.1%. It
applies only to the first $137,100 paid to you during 2026 for
services performed as an employee representative.

Who Must File
You must file Form CT-2 for the first quarter in which you’re
paid taxable compensation for services you performed as an
employee representative. Continue filing returns for each
quarter, even if you’re not paid taxable compensation. When
your taxable compensation payments stop completely, you
must file a final return. Write “Final Return” at the top of Form
CT-2 and on the duplicate copy.

Definitions
Employee representative. An employee representative is:
1. Any officer or official representative of a railway labor
organization that isn’t an employer under section 3231(a) who
(a) was in the service of an employer, and (b) is authorized and
designated to represent employees under the Railway Labor
Act, or
2. Any individual who is regularly assigned to or regularly
employed by an employee representative as defined above in
connection with the duties of the employee representative’s
office.
Compensation. Compensation means payment in money,
meaning currency issued by a recognized authority as a
medium of exchange, for services performed as an employee
representative. It doesn’t include payments made specifically for
traveling or other bona fide and necessary expenses that meet
the rules in the regulations under section 62. For purposes of
Tier 1 taxes, compensation doesn’t include sickness or accident
disability payments received (a) under a workers’ compensation
law, (b) under section 2(a) of the Railroad Unemployment
Insurance Act for days of sickness due to an on-the-job injury,
(c) under the Railroad Retirement Act, or (d) more than 6 months

DRAFT — DO NOT FILE

DRAFT — DO NOT FILE

Tax rates and compensation bases for 2026. The Tier 1 tax
rate is 12.4%. The Tier 1 compensation base is $184,500. The
Tier 1 Medicare tax rate is 2.9%. There is no compensation
base limit for Tier 1 Medicare tax. The Tier 2 tax rate on
employee representatives is 13.1%. The Tier 2 compensation
base is $137,100.

When To File

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Form CT-2 (Rev. 3-2026)

after the month in which the employee representative last
worked for the railway labor organization. For purposes of Tier 2
taxes, compensation doesn’t include payments made under a
sickness or accident disability plan or a medical or
hospitalization plan in connection with sickness or accident
disability.
Compensation is considered paid when actually paid or when
constructively paid. Constructively paid means that the pay (a)
has been credited to the employee representative’s account or
set apart with no substantial limit or condition on how or when
the payment will be made, and (b) is available to draw on at any
time and to control.

If you perform services as both an employee representative and
an employee and your total pay for these services is more than
the applicable maximum (see Line 1 and Line 4, later), then for
lines 1 and 4 subtract your pay as an employee from the
maximum to determine the amount subject to the employee
representative’s tax.
Line 1. Multiply the compensation subject to Tier 1 tax by
12.4% (0.124). This tax applies only to the first $184,500 paid to
you during 2026 for services performed as an employee
representative.
Line 2. Multiply the compensation subject to Tier 1 Medicare
tax by 2.9% (0.029). This tax applies to all compensation paid
to you during 2026 for services performed as an employee
representative.
Line 3. Multiply the compensation subject to Tier 1 Additional
Medicare Tax by 0.9% (0.009). This tax applies only to
compensation that exceeds $200,000.
Line 4. Multiply the compensation subject to Tier 2 tax by
13.1% (0.131). This tax applies only to the first $137,100 paid to
you during 2026 for services performed as an employee
representative.
Line 5. Enter a credit for an overpayment of tax, penalty, or
interest you overpaid for an earlier quarter. Attach two copies of
a detailed statement explaining the credit claimed. However,
don’t include a credit for an overpayment of Additional Medicare
Tax for an earlier year. Any Additional Medicare Tax paid will be
credited against the total tax liability shown on your Form 1040,
U.S. Individual Income Tax Return, or Form 1040-SR, U.S.
Income Tax Return for Seniors. If you have filed Form 1040 or
1040-SR for the earlier year, you should make a claim for refund
for Additional Medicare Tax paid using Form 1040-X, Amended
U.S. Individual Income Tax Return.
Line 6. We ask that you pay the amount shown on line 6
electronically using EFTPS or IRS Direct Pay. For more
information about EFTPS, go to www.eftps.gov or call
800-555-4477. To contact EFTPS using Telecommunications
Relay Services (TRS) for people who are deaf, hard of hearing,
or have a speech disability, dial 711 and then provide the TRS
assistant the 800-555-4477 number above or 800-733-4829.
For more information about IRS Direct Pay, go to www.irs.gov/
DirectPay. Additional information about EFTPS is also available
in Pub. 966.
If you pay by check or money order, make it payable to
“United States Treasury.” Enter on your check or money order
your social security number (SSN), “Form CT-2,” and the
quarter (for example, “1Q 2026” for the first quarter of 2026).

Name, address, etc. Type or print your name, address, SSN,
and the name of the labor organization for which you perform
services.
Return for calendar quarter. Enter the months of the quarter
and the year of the return. For example, show the first quarter of
2026 as “Jan., Feb., Mar. 2026.”
Paid preparer. A paid preparer must sign Form CT-2 and
provide the information in the Paid Preparer Use Only section if
the preparer was paid to prepare Form CT-2 and isn’t an
employee of the filing entity. Paid preparers must sign paper
returns with a manual signature. The preparer must give you the
original return and duplicate copy to be filed with the IRS and
another copy of the return for your records.
If you’re a paid preparer, enter your preparer tax identification
number (PTIN) in the space provided. Include your complete
address. If you work for a firm, write the firm’s name and the EIN
of the firm. You can apply for a PTIN online or by filing Form
W-12. For more information about applying for a PTIN online, go
to www.irs.gov/PTIN. You can’t use your PTIN in place of the
EIN of the tax preparation firm.
Privacy Act and Paperwork Reduction Act Notice. We ask for
the information on Form CT-2 to carry out the Internal Revenue
laws of the United States. We need it to figure and collect the
right amount of tax. Section 3211 and section 6011 and their
regulations require employee representatives to report and pay
over to the IRS railroad retirement taxes (Tier 1, Tier 2, Tier 1
Medicare tax, and Tier 1 Additional Medicare Tax). Form CT-2 is
used to determine the amount of such taxes that you owe.
Section 6109 requires you to provide your identification
numbers. If you fail to provide this information in a timely
manner, or provide false or fraudulent information, you may be
subject to penalties.
You’re not required to provide the information requested on a
form that is subject to the Paperwork Reduction Act unless the
form displays a valid OMB control number. Books and records
relating to a form or its instructions must be retained as long as
their contents may become material in the administration of any
Internal Revenue law.
Generally, tax returns and return information are confidential,
as required by section 6103. However, section 6103 allows or
requires the IRS to disclose or give the information shown on
your tax return to others as described in the Code. For example,
we disclose your tax information to the Railroad Retirement
Board for use in administering the Railroad Retirement Act, and
we may disclose your tax information to the Department of
Justice for civil and criminal litigation, and to cities, states, the
District of Columbia, and U.S. commonwealths and territories
for use in administering their tax laws. We may also disclose this
information to other countries under a tax treaty, to federal and
state agencies to enforce federal nontax criminal laws, or to
federal law enforcement agencies and intelligence agencies to
combat terrorism.
The time needed to complete and file Form CT-2 will vary
depending on individual circumstances. The estimated burden
for filing Form CT-2 is approved under OMB control number
1545-0029 and is included in the estimates shown in the
Instructions for Form 941.

DRAFT — DO NOT FILE

DRAFT — DO NOT FILE

Specific Instructions

Signature. You or your authorized agent must sign the
ORIGINAL copy of Form CT-2.