Skip to Content

Rule

Federal Travel Regulation; Relocation Income Tax (RIT) Allowance Tax Tables-2005 Update

Document Details

Information about this document as published in the Federal Register.

Published Document

This document has been published in the Federal Register. Use the PDF linked in the document sidebar for the official electronic format.

Start Preamble

AGENCY:

Office of Governmentwide Policy, (GSA).

ACTION:

Final rule.

SUMMARY:

The Federal, State, and Puerto Rico tax tables for calculating the relocation income tax (RIT) allowance must be updated yearly to reflect changes in Federal, State, and Puerto Rico income tax brackets and rates. The Federal, State, and Puerto Rico tax tables contained in this rule are for calculating the 2005 RIT allowance to be paid to relocating Federal employees.

DATES:

Effective Date: January 1, 2005.

Start Further Info

FOR FURTHER INFORMATION CONTACT:

The Regulatory Secretariat (VIR), Room 4035, GS Building, Washington, DC 20405, (202) 208-7312, for information pertaining to status or publication schedules. For clarification of content, contact Ms. Sallie Sherertz, Office of Governmentwide Policy, Travel Management Policy Division, at (202) 219-3455. Please cite FTR Amendment 2005-02, FTR case 2005-302.

End Further Info End Preamble Start Supplemental Information

SUPPLEMENTARY INFORMATION:

A. Background

Section 5724b of title 5, United States Code, provides for reimbursement of substantially all Federal, State, and local income taxes incurred by a transferred Federal employee on taxable moving expense reimbursements. Policies and procedures for the calculation and payment of a RIT allowance are contained in FTR Part 302-17. The Federal, State, and Puerto Rico tax tables for calculating RIT allowance payments are updated yearly to reflect changes in Federal, State, and Puerto Rico income tax brackets and rates.

This amendment provides the tax tables necessary to compute the relocation income tax (RIT) allowance for employees who are taxed in 2004 on moving expense reimbursements.

B. Executive Order 12866

This is not a significant regulatory action and, therefore, was not subject to review under section 6(b) of Executive Order 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804.

C. Regulatory Flexibility Act

This final rule is not required to be published in the Federal Register for notice and comment; therefore, the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., does not apply.

D. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to the FTR do not impose recordkeeping or information collection requirements, or the collection of information from offerors, contractors, or members of the public that require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq.

E. Small Business Regulatory Enforcement Fairness Act

This final rule is also exempt from congressional review prescribed under 5 U.S.C. 801 since it relates solely to agency management and personnel.

Start List of Subjects

List of Subjects in 41 CFR Chapter 302, Part 302-17

End List of Subjects Start Signature

Dated: March 1, 2005.

Stephen A. Perry,

Administrator of General Services.

End Signature Start Amendment Part

For the reasons set forth in the preamble, under

End Amendment Part Start Part

PART 302-17_RELOCATION INCOME TAX (RIT) ALLOWANCE

End Part Start Amendment Part

1. The authority citation for

End Amendment Part Start Authority

Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR 13747, 3 CFR, 1971-1975 Comp., p. 586.

End Authority Start Amendment Part

2. Revise Appendixes A, B, and C to part 302-17 to read as follows:

End Amendment Part

Appendix A to Part 302-17—Federal Tax Tables for RIT Allowance

Federal Marginal Tax Rates by Earned Income Level and Filing Status—Tax Year 2004

[The following table is to be used to determine the Federal marginal tax rate for Year 1 for computation of the RIT allowance as prescribed in § 302-17.8(e)(1). This table is to be used for employees in which their Year 1 occurred during calendar year 2004.]

Marginal tax rate percentSingle taxpayerHead of householdMarried filing jointlyMarried filing separately
OverBut not overOverBut not overOverBut not overOverBut not over
10$8,486$15,852$15,539$25,991$22,763$36,688$10,614$17,891
1515,85239,09325,99156,66836,68882,62517,89141,386
2539,09384,08156,668123,62982,625147,43941,38674,492
2884,081166,123123,629193,801147,439212,15874,492108,134
33166,123341,553193,801354,536212,158352,775108,134179,237
35341,553354,536352,775179,237
Start Printed Page 12599

Appendix B to Part 302-17—State Tax Tables for RIT Allowance

State Marginal Tax Rates by Earned Income Level—Tax Year 2004

[The following table is to be used to determine the State marginal tax rates for calculation of the RIT allowance as prescribed in § 302-17.8(e)(2). This table is to be used for employees who received covered taxable reimbursements during calendar year 2004. (The rates shown below are married filing jointly.) If the state has a specific single rate, it is shown. If an employee is in a different filing status, please see 2005 State Tax Handbook, CCH Inc.]

Marginal tax rates (stated in percents) for the earned income amounts specified in each column. 1 2
State (or district)$20,000-$24,999$25,000-$49,999$50,000-$74,999$75,000 & Over 3
Alabama5555
Alaska0000
Arizona3.203.203.743.74
If single status 43.203.744.724.72
Arkansas6777
California2469.3
If single status 4489.39.3
Colorado4.634.634.634.63
Connecticut5555
Delaware5.25.555.955.95
District of Columbia7.59.39.39.3
Florida0000
Georgia6666
Hawaii6.47.27.68.25
If single status 47.67.98.258.25
Idaho7.47.47.87.8
If single status 47.47.87.87.8
Illinois3333
Indiana3.43.43.43.4
Iowa6.487.928.988.98
Kansas3.56.256.456.45
If single status 46.256.456.456.45
Kentucky6666
Louisiana4466
If single status 44666
Maine78.58.58.5
If single status 48.58.58.58.5
Maryland4.754.754.754.75
Massachusetts5.35.35.35.3
Michigan3.93.93.93.9
Minnesota5.357.057.057.05
If single status 47.057.057.857.85
Mississippi5555
Missouri6666
Montana891011
Nebraska3.575.126.846.84
If single status 45.126.846.846.84
Nevada0000
New Hampshire0000
New Jersey1.751.752.455.525
If single status 41.753.55.5256.37
New Mexico4.766.86.8
If single status 466.86.86.8
New York5.255.96.856.85
If single status 46.856.856.856.85
North Carolina7777
If single status 4777.757.75
North Dakota2.12.13.923.92
If single status 42.13.923.924.34
Ohio4.4574.4575.2015.943
Oklahoma6.656.656.656.65
Oregon9999
Pennsylvania3.073.073.073.07
Rhode Island 525252525
South Carolina7777
South Dakota0000
Tennessee0000
Texas0000
Utah7777
Vermont3.63.67.27.20
If single status 43.67.28.58.5
Virginia5.755.755.755.75
Washington0000
West Virginia44.566.5
Wisconsin6.56.56.56.5
Start Printed Page 12600
Wyoming0000
(The above table headings established by IRS.)
1 Earned income amounts that fall between the income brackets shown in this table (e.g., $24,999.45, $49,999.75) should be rounded to the nearest dollar to determine the marginal tax rate to be used in calculating the RIT allowance.
2 If the earned income amount is less than the lowest income bracket shown in this table, the employing agency shall establish an appropriate marginal tax rate as provided in § 302-17.8(e)(2)(ii).
3 This is an estimate. For earnings over $100,000, and for filing statuses other than those above, please consult actual tax tables. (See 2005 State Tax Handbook, CCH, Inc.)
4 This rate applies only to those individuals certifying that they will file under a single status within the States where they will pay income taxes.
5 The income tax rate for Rhode Island is 25 percent of Federal income tax liability for all employees. Rates shown as a percent of Federal income tax liability must be converted to a percent of income as provided in § 302-17.8(e)(2)(iii).

Appendix C to Part 302-17—Federal Tax Tables For RIT Allowance—Year 2

Estimated Ranges of Wage and Salary Income Corresponding to Federal Statutory Marginal Income Tax Rates by Filing Status in 2005

[The following table is to be used to determine the Federal marginal tax rate for Year 2 for computation of the RIT allowance as prescribed in § 302-17.8(e)(1). This table is to be used for employees whose Year 1 occurred during calendar years 1995, 1996, 1997, 1998, 1999, 2001, 2002, 2003, or 2004.]

Marginal tax rate percentSingle taxpayerHead of householdMarried filing jointlyMarried filing separately
OverBut not overOverBut not overOverBut not overOverBut not over
10$8,712$16,201$15,989$26,630$23,519$37,568$10,897$18,242
1516,20139,89826,63058,07937,56884,11018,24242,410
2539,89885,74858,079125,25284,110150,30142,41076,165
2885,748169,230125,252195,589150,301216,71076,165109,970
33169,230348,318195,589360,009216,710360,571109,970182,419
35348,318360,009360,571182,419

Appendix D to Part 302-17—[Amended]

Start Amendment Part

3. Amend the heading of Appendix D to part 302-17 by removing “2003” and adding “2004” in its place.

End Amendment Part End Supplemental Information

[FR Doc. 05-5000 Filed 3-14-05; 8:45 am]

BILLING CODE 6820-14-P