Federal Travel: Relocation income tax allowance tax tables,
[Federal Register: March 15, 2005 (Volume 70, Number 49)]
[Rules and Regulations]
[Page 12598-12600]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15mr05-7]
GENERAL SERVICES ADMINISTRATION
41 CFR Part 302-17
[FTR Amendment 2005-02; FTR Case 2005-302]
RIN 3090-AI05
Federal Travel Regulation; Relocation Income Tax (RIT) Allowance Tax Tables--2005 Update
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.
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.
SUPPLEMENTARY INFORMATION:
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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.
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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.
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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.
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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.
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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 Chapter 302, Part 302-17
Government employees, Income taxes, Relocation allowances and entitlements, Transfers, Travel and transportation expenses.
Dated: March 1, 2005. Stephen A. Perry, Administrator of General Services.
0 For the reasons set forth in the preamble, under 5 U.S.C. 5701-5709, GSA amends 41 CFR chapter 302, 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 continues to read as follows:
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.
0 2. Revise Appendixes A, B, and C 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 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 Sec. 302-17.8(e)(1). This table is to be used for employees in which their Year 1 occurred during calendar year 2004.]
Single taxpayer
Head of household Married filing jointly
Married filing
separately Marginal tax rate percent
------------------------- Over But not
Over But not
Over But not
But not over
over
over
Over
over
10.............................................. $8,486 $15,852 $15,539 $25,991 $22,763 $36,688 $10,614 $17,891 15.............................................. 15,852 39,093 25,991 56,668 36,688 82,625 17,891 41,386 25.............................................. 39,093 84,081 56,668 123,629 82,625 147,439 41,386 74,492 28.............................................. 84,081 166,123 123,629 193,801 147,439 212,158 74,492 108,134 33.............................................. 166,123 341,553 193,801 354,536 212,158 352,775 108,134 179,237 35.............................................. 341,553 ........... 354,536 ........... 352,775 ........... 179,237 ...........
[[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 Sec. 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\
Alabama.....................
5
5
5
5 Alaska......................
0
0
0
0 Arizona.....................
3.20
3.20
3.74
3.74
If single status \4\....
3.20
3.74
4.72
4.72 Arkansas....................
6
7
7
7 California..................
2
4
6
9.3
If single status \4\....
4
8
9.3
9.3 Colorado....................
4.63
4.63
4.63
4.63 Connecticut.................
5
5
5
5 Delaware....................
5.2
5.55
5.95
5.95 District of Columbia........
7.5
9.3
9.3
9.3 Florida.....................
0
0
0
0 Georgia.....................
6
6
6
6 Hawaii......................
6.4
7.2
7.6
8.25
If single status \4\....
7.6
7.9
8.25
8.25 Idaho.......................
7.4
7.4
7.8
7.8
If single status \4\....
7.4
7.8
7.8
7.8 Illinois....................
3
3
3
3 Indiana.....................
3.4
3.4
3.4
3.4 Iowa........................
6.48
7.92
8.98
8.98 Kansas......................
3.5
6.25
6.45
6.45
If single status \4\....
6.25
6.45
6.45
6.45 Kentucky....................
6
6
6
6 Louisiana...................
4
4
6
6
If single status \4\....
4
6
6
6 Maine.......................
7
8.5
8.5
8.5
If single status \4\....
8.5
8.5
8.5
8.5 Maryland....................
4.75
4.75
4.75
4.75 Massachusetts...............
5.3
5.3
5.3
5.3 Michigan....................
3.9
3.9
3.9
3.9 Minnesota...................
5.35
7.05
7.05
7.05
If single status \4\....
7.05
7.05
7.85
7.85 Mississippi.................
5
5
5
5 Missouri....................
6
6
6
6 Montana.....................
8
9
10
11 Nebraska....................
3.57
5.12
6.84
6.84
If single status \4\....
5.12
6.84
6.84
6.84 Nevada......................
0
0
0
0 New Hampshire...............
0
0
0
0 New Jersey..................
1.75
1.75
2.45
5.525
If single status \4\....
1.75
3.5
5.525
6.37 New Mexico..................
4.7
6
6.8
6.8
If single status \4\....
6
6.8
6.8
6.8 New York....................
5.25
5.9
6.85
6.85
If single status \4\....
6.85
6.85
6.85
6.85 North Carolina..............
7
7
7
7
If single status \4\....
7
7
7.75
7.75 North Dakota................
2.1
2.1
3.92
3.92
If single status \4\....
2.1
3.92
3.92
4.34 Ohio........................
4.457
4.457
5.201
5.943 Oklahoma....................
6.65
6.65
6.65
6.65 Oregon......................
9
9
9
9 Pennsylvania................
3.07
3.07
3.07
3.07 Rhode Island \5\............
25
25
25
25 South Carolina..............
7
7
7
7 South Dakota................
0
0
0
0 Tennessee...................
0
0
0
0 Texas.......................
0
0
0
0 Utah........................
7
7
7
7 Vermont.....................
3.6
3.6
7.2
7.20
If single status \4\....
3.6
7.2
8.5
8.5 Virginia....................
5.75
5.75
5.75
5.75 Washington..................
0
0
0
0 West Virginia...............
4
4.5
6
6.5 Wisconsin...................
6.5
6.5
6.5
6.5
[[Page 12600]]
Wyoming.....................
0
0
0
0
(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 Sec. 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 Sec. 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 Sec. 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.]
Single taxpayer
Head of household Married filing jointly
Married filing
separately Marginal tax rate percent
------------------------- Over But not
Over But not
Over But not
But not over
over
over
Over
over
10.............................................. $8,712 $16,201 $15,989 $26,630 $23,519 $37,568 $10,897 $18,242 15.............................................. 16,201 39,898 26,630 58,079 37,568 84,110 18,242 42,410 25.............................................. 39,898 85,748 58,079 125,252 84,110 150,301 42,410 76,165 28.............................................. 85,748 169,230 125,252 195,589 150,301 216,710 76,165 109,970 33.............................................. 169,230 348,318 195,589 360,009 216,710 360,571 109,970 182,419 35.............................................. 348,318 ........... 360,009 ........... 360,571 ........... 182,419 ...........
Appendix D to Part 302-17--[Amended]
0 3. Amend the heading of Appendix D to part 302-17 by removing ``2003'' and adding ``2004'' in its place.
[FR Doc. 05-5000 Filed 3-14-05; 8:45 am]
BILLING CODE 6820-14-P
