DATE: February 22, 2000
FROM: Barry McVay, CPCM
SUBJECT: Federal Travel Regulation (FTR) Amendment 91; Relocation Income Tax (RIT) Allowance Tax Tables
SOURCE: Federal Register, February 22, 2000, Vol. 65, No. 35, page 8657
AGENCIES: General Services Administration (GSA)
ACTION: Final Rule
SYNOPSIS: GSA is amending FTR Part 302-11, Relocation Income Tax (RIT) Allowance, to update the federal, state, and Puerto Rico tax tables for calculating the RIT allowance to be paid to federal employees who relocate.
EDITOR'S NOTE: The FTR is Chapters 300 through 304 of Title 41 of the Code of Federal Regulations (CFR).
EFFECTIVE DATE: This final rule is effective January 1, 2000, and applies for RIT allowance payments made on or after January 1, 2000.
FOR FURTHER INFORMATION CONTACT: Calvin L. Pittman, Office of Governmentwide Policy (MTT), Washington, DC 20405, 202-501-1538.
SUPPLEMENTAL INFORMATION: Payment of an RIT allowance is authorized to reimburse eligible transferred employees for substantially all of the additional federal, state, and local income taxes incurred by the employee for certain travel and transportation expenses and relocation allowances which are furnished by the government. Examples of such expenses are travel expenses (including per diem), household goods shipment, househunting trips, and real estate expenses (settlement costs on old and new residences). These are reported to the Internal Revenue Service as income to the employee, and the RIT allowance compensates the employee for the additional taxes.
The federal, state, and Puerto Rico tax tables for calculating the RIT allowance must be updated yearly to reflect changes in federal, state, and Puerto Rico income tax brackets and rates. To reflect these changes, this final rule adds the following tables to the appendices at the end of FTR 302-11:
FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.
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