DATE: March 15, 2005

SUBJECT: Federal Travel Regulation (FTR) Amendment 2005-02; Relocation Income Tax (RIT) Allowance Tax Tables

SOURCE: Federal Register, March 15, 2005, Vol. 70, No. 49, page 12598

AGENCIES: General Services Administration (GSA)

ACTION: Final Rule

SYNOPSIS: GSA is amending FTR Part 302-17, 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: January 1, 2005.

FOR FURTHER INFORMATION CONTACT: Sallie Sherertz, Office of Governmentwide Policy, Travel Management Policy, 202-219-3455.

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 revises the following tables in the appendices at the end of FTR 302-17:

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953.

Copyright 2005 by Panoptic Enterprises. All Rights Reserved.

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