Federal Travel Regulation; Relocation Income Tax Allowance Tax Tables-2008 Update

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Federal Register: May 7, 2008 (Volume 73, Number 89)

Rules and Regulations

Page 25539-25542

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

DOCID:fr07my08-15

GENERAL SERVICES ADMINISTRATION 41 CFR Part 302-17

FTR Amendment 2008-03; FTR Case 2008-302; Docket 2008-002, Sequence 1

RIN 3090-AI48

Federal Travel Regulation; Relocation Income Tax (RIT) Allowance

Tax Tables--2008 Update

AGENCY: Office of Governmentwide Policy, General Services

Administration (GSA).

ACTION: Final rule.

SUMMARY: This rule updates the Federal, State, and Puerto Rico tax tables for calculating the relocation income tax (RIT) allowance, 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 use in calculating the 2008 RIT allowance for tax year 2007 to be paid to relocating Federal employees.

DATES: Effective Date: This final rule is effective on May 7, 2008.

Applicability date: January 1, 2008.

FOR FURTHER INFORMATION CONTACT: The Regulatory Secretariat (VIR), Room 4035, GSA Building, Washington, DC 20405, telephone (202)208-7312, for information pertaining to status or publication schedules. For clarification of content, contact Ed Davis, Office of Governmentwide

Policy, Travel Management Policy (MTT), Washington, DC 20405, telephone

  (202) 501-4755. Please cite FTR Amendment 2008-03, FTR case 2008-302.

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 the RIT allowance are contained in the Federal Travel

Regulation (41 CFR part 302-17). GSA updates Federal, State, and Puerto

Rico tax tables for calculating RIT allowance payments yearly to reflect changes in Federal, State, and Puerto Rico income tax brackets and rates.

This amendment also provides a tax table necessary to compute the

RIT allowance for employees who received reimbursement for relocation expenses in previous years.

B. Executive Order 12866

This regulation is excepted from the definition of ``regulation'' or ``rule'' under Section 3(d)(3) of Executive Order 12866, Regulatory

Planning and Review, dated September 30, 1993 and, therefore, was not subject to review under Section 6(b) of that Executive Order.

C. Regulatory Flexibility Act

This final rule is not required to be published in the Federal

Register for notice and comment as per the exemption specified in 5 U.S.C. 553(a)(2); 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 this final rule does 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.

List of Subjects in 41 CFR Part 302-17

Government employees, Income taxes, Relocation allowances and entitlements, Transfers, Travel and transportation expenses.

Dated: May 1, 2008.

David L. Bibb,

Acting Administrator of General Services. 0

For the reasons set forth in the preamble, under 5 U.S.C. 5738, GSA amends 41 CFR Part 302-17 as set forth below:

PART 302-17--RELOCATION INCOME TAX (RIT) ALLOWANCE 0 1. The authority citation for 41 CFR Part 302-17 is revised to read as follows:

Page 25540

Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, as amended, 36 FR 13747, 3 CFR, 1971-1975 Comp., p. 586. 0 2. Revise Appendixes A, B, C, and D to part 302-17 to read as follows:

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 2007

Use the following table to compute the RIT allowance for Federal taxes, as prescribed in 302-17.8(e)(1), on Year 1 taxable reimbursements received during calendar year 2007.

Marginal tax rate

Single taxpayer

Head of household

Married filing jointly/

Married filing

qualifying widows &

separately widowers

But not

But not ------------------------

Percent

Over

over

Over

over

But not

Over

But not

Over

over

over

10......................................................

$ 9,597

$18,107

$18,364

$30,153

$27,463

$42,942

$14,203

$21,913 15......................................................

18,107

44,461

30,153

64,200

42,942

94,016

21,913

46,764 25......................................................

44,461

95,997

64,200

142,780

94,016

167,442

46,764

84,076 28......................................................

95,997

191,453

142,780

225,385

167,442

243,961

84,076

124,354 33......................................................

191,453

390,566

225,385

405,567

243,961

404,547

124,354

205,412 35......................................................

390,566 ..........

405,567 ..........

404,547 ..........

205,412 ..........

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

State Marginal Tax Rates by Earned Income Level--Tax Year 2007

(Use the following table to compute the RIT allowance for State taxes, as prescribed in 302-17.8(e)(2), on taxable reimbursements received during calendar year 2007. The rates on the first line for each State are for employees who are married and file jointly; if there is a second line for a State, it displays the rates for employees who file as single. For more additional information, such as State rates for other filing statuses, please see the 2008 State Tax Handbook, pp. 259-274, available from CCH Inc., http://tax.cchgroup.com/Books/ default#S.)

Marginal tax rates (stated in percents) for the earned income amounts specified in each column.1 2 3

$75,000 & Over

State (or district)

$20,000-$24,999

$25,000-$49,999

$50,000-$74,999

\4\

Alabama.............................

5.00

5.00

5.00

5.00

Alaska..............................

0.00

0.00

0.00

0.00

Arizona.............................

2.88

3.36

3.36

3.36

If single status, married filing

2.88

3.36

4.24

4.24 separately \5\.....................

Arkansas............................

6.00

7.00

7.00

7.00

California..........................

2.00

4.30

9.30

9.30

If single status, married filing

2.00

9.30

9.30

9.30 separately \5\.....................

Colorado............................

4.63

4.63

4.63

4.63

Connecticut.........................

5.00

5.00

5.00

5.00

Delaware............................

5.20

5.55

5.95

5.95

District of Columbia................

6.00

8.50

8.50

8.50

Florida.............................

0.00

0.00

0.00

0.00

Georgia.............................

6.00

6.00

6.00

6.00

Hawaii..............................

6.40

7.60

7.90

8.25

If single status, married filing

7.60

7.90

8.25

8.25 separately \5\.....................

Idaho...............................

7.40

7.80

7.80

7.80

If single status, married filing

7.80

7.80

7.80

7.80 separately \5\.....................

Illinois............................

3.00

3.00

3.00

3.00

Indiana.............................

3.40

3.40

3.40

3.40

Iowa................................

6.48

7.92

8.98

8.98

Kansas..............................

6.25

6.45

6.45

6.45

If single status, married filing

6.25

6.45

6.45

6.45 separately \5\.....................

Kentucky............................

5.80

5.80

5.80

6.00

Louisiana...........................

2.00

4.00

6.00

6.00

If single status, married filing

4.00

6.00

6.00

6.00 separately \5\.....................

Maine...............................

7.00

8.50

8.50

8.50

If single status, married filing

8.50

8.50

8.50

8.50 separately \5\.....................

Maryland............................

4.75

4.75

4.75

4.75

Massachusetts.......................

5.30

5.30

5.30

5.30

Michigan............................

3.90

3.90

3.90

3.90

Michigan on or after October 1, 2007

4.35

4.35

4.35

4.35

Minnesota...........................

5.35

7.05

7.05

7.05

If single status, married filing

7.05

7.05

7.85

7.85 separately \5\.....................

Mississippi.........................

5.00

5.00

5.00

5.00

Missouri............................

6.00

6.00

6.00

6.00

Montana.............................

6.90

6.90

6.90

6.90

Nebraska............................

3.57

6.84

6.84

6.84

If single status, married filing

5.12

6.84

6.84

6.84 separately \5\.....................

Nevada..............................

0.00

0.00

0.00

0.00

New Hampshire.......................

0.00

0.00

0.00

0.00

Page 25541

New Jersey..........................

1.75

1.75

3.50

5.525

If single status, married filing

1.75

5.525

5.525

6.370 separately \5\.....................

New Mexico..........................

5.30

5.30

5.30

5.30

New York............................

5.25

6.85

6.85

6.85

If single status, married filing

6.85

6.85

6.85

6.85 separately \5\.....................

North Carolina......................

7.00

7.00

7.00

7.00

If single status, married filing

7.00

7.00

7.75

7.75 separately \5\.....................

North Dakota........................

2.10

2.10

3.92

3.92

If single status, married filing

2.10

3.92

3.92

4.34 separately \5\.....................

Ohio................................

3.895

4.546

4.546

5.194

Oklahoma............................

5.650

5.650

5.650

5.650

Oregon..............................

9.00

9.00

9.00

9.00

Pennsylvania........................

3.07

3.07

3.07

3.07

Rhode Island \6\....................

3.75

3.75

7.00

7.00

If single status, married filing

3.75

7.00

7.00

7.75 separately \5\.....................

South Carolina......................

7.00

7.00

7.00

7.00

South Dakota........................

0.00

0.00

0.00

0.00

Tennessee...........................

0.00

0.00

0.00

0.00

Texas...............................

0.00

0.00

0.00

0.00

Utah................................

6.98

6.98

6.98

6.98

Vermont.............................

3.60

7.20

7.20

7.20

If single status, married filing

3.60

7.20

8.50

8.50 separately \5\.....................

Virginia............................

5.75

5.75

5.75

5.75

Washington..........................

0.00

0.00

0.00

0.00

West Virginia.......................

4.00

6.00

6.50

6.50

Wisconsin...........................

6.50

6.50

6.50

6.50

Wyoming.............................

0.00

0.00

0.00

0.00

The above table/column 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 Sec. 302-17.8(e)(2)(ii).

\3\ If two or more marginal tax rates of a State overlap an income bracket shown in this table, then the highest of the two or more State marginal tax rates is shown for that entire income bracket. For more specific information, see the 2008 State Tax Handbook, pp. 259-274, CCH, Inc., http://tax.cchgroup.com/Books/default#S.

\4\ This is an estimate. For earnings over $100,000, and for filing statuses other than those above, please consult actual tax tables. See 2008 State Tax Handbook, pp. 259-274, CCH, Inc., http://tax.cchgroup.com/Books/ default#S.

\5\ This rate applies only to those individuals certifying that they will file under a single or married filing separately status within the states where they will pay income taxes.

\6\ The income tax rate for Rhode Island is 25 percent of Federal income tax rates, including capital gains rates and any other special rates for other types of income. Rates shown as a percent of Federal income tax liability must be converted to a percent of income as provided in Sec. 302-17.8(e)(2)(iii). Effective for the 2007 tax year, taxpayers may elect to compute income tax liability based on a graduated rate schedule or an alternative flat tax equal to 7.5%.

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 2007

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 301- 17.8(e)(1). This table is to be used for employees whose Year 1 occurred during calendar years 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006 or 2007.

Marginal tax rate

Single taxpayer

Head of household

Married filing jointly/

Married filing

qualifying widows &

separately widowers

But not

But not ------------------------

Percent

Over

over

Over

over

But not

Over

But not

Over

over

over

10......................................................

$8,739

16,560

$16,538

$27,374

$24,163

$38,534

$12,036

$19,194 15.....................................................

16,560

41,041

27,374

59,526

38,534

86,182

19,194

43,330 25.....................................................

41,041

88,541

59,526

128,605

86,182

154,786

43,330

79,441 28.....................................................

88,541

175,222

128,605

203,511

154,786

224,818

79,441

114,716 33.....................................................

175,222

360,212

203,511

375,305

224,818

374,173

114,716

188,184

Page 25542

35.....................................................

360,212 ..........

375,305 ..........

374,173 ..........

188,184 ..........

Appendix D to Part 302-17--Puerto Rico Tax Tables for RIT Allowance

Puerto Rico Marginal Tax Rates by Earned Income Level--Tax Year 2007

(Use the following table to compute the RIT allowance for Puerto Rico taxes, as prescribed in 302-17.8(e)(4)(i), on taxable reimbursements received during calendar year 2007.)

For married person living with spouse and filing jointly, married person not living with spouse, single person, or head of household

Marginal tax rate

--------------------------------------

But

Percent

Over

not over

------ 7%.................................

$2,000

17,000 14% + 1,190........................

17,000

30,000 25% + 3,010........................

30,000

50,000 33% + 8,010........................

50,000

For married person living with spouse and filing separately

Marginal tax rate

But

Percent

Over

not over

------ 7%.................................

$1,000

8,500 14% + $595.........................

8,500

15,000 25% + 1,505........................

15,000 25,000 33% + 4,005........................

25,000

Source: Individual Income Tax Return 2007--Long Form; Commonwealth of

Puerto Rico, Department of the Treasury,P.O. Box 9022501, San Juan, PR 00902-2501;http://www.hacienda.gobierno.pr/.

FR Doc. E8-10022 Filed 5-6-08; 8:45 am

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