Supreme Court rules stock not ‘money remuneration’ taxable

Start adding items to your reading lists:
Save this item to:
This item has been saved to your reading list.

June 2018


On June 21, 2018, the US Supreme Court held, 5-4, that stock options granted to railroad employees are not ‘compensation’ subject to tax under the Railroad Retirement Tax Act (RRTA) because they are not ‘money remuneration,’ the term used in that law (Wisconsin Central Ltd. V. United States, No. 17-530 (2018)).

The Court concluded that when Congress adopted the RRTA in 1937, ‘money’ was understood as currency issued by a recognized authority as a medium of exchange; because stock is not so recognized, it is not ‘money remuneration.’  The case was remanded for further proceedings consistent with the opinion.

Contact us

Kelley McLaughlin

US Tax Marketing Leader, PwC US

Follow us