Source: http://www.expo@gsa.gov/graphics/ogp/FTRAmdtFR2008-03.htm
Timestamp: 2014-08-29 05:44:15
Document Index: 34995021

Matched Legal Cases: ['art 302', 'art 302', 'art 302', 'ART 302', 'art 302', 'art 302', 'art 302', 'art 302', 'art 302', 'art 302']

FR Doc E8-10022
[Page 25539-25542]
[DOCID:fr07my08-15]
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
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.
FOR FURTHER INFORMATION CONTACT: The Regulatory Secretariat (VIR), Room
4035, GSA Building, Washington, DC 20405, telephone (202)208-7312, 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.
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
This amendment also provides a tax table necessary to compute the
RIT allowance for employees who received reimbursement for relocation
expenses in previous years.
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.
601, et seq., does not apply.
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.
Government employees, Income taxes, Relocation allowances and
entitlements, Transfers, Travel and transportation expenses.
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
1. The authority citation for 41 CFR Part 302-17 is revised to read as
[[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.
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 &amp;         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://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&amp;log=linklog&amp;to=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 &amp; 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
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
Idaho...............................               7.40               7.80               7.80               7.80
If single status, married filing                   7.80               7.80               7.80               7.80
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
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
Maine...............................               7.00               8.50               8.50               8.50
If single status, married filing                   8.50               8.50               8.50               8.50
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
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
Nevada..............................               0.00               0.00               0.00               0.00
New Hampshire.......................               0.00               0.00               0.00               0.00
New Jersey..........................               1.75               1.75               3.50              5.525
If single status, married filing                   1.75              5.525              5.525              6.370
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
North Carolina......................               7.00               7.00               7.00               7.00
If single status, married filing                   7.00               7.00               7.75               7.75
North Dakota........................               2.10               2.10               3.92               3.92
If single status, married filing                   2.10               3.92               3.92               4.34
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
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
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://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&amp;log=linklog&amp;to=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://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&amp;log=linklog&amp;to=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
Marginal tax rate                         Single taxpayer        Head of household    Married filing jointly/     Married  filing
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          --------------------------------------
Percent          Over        not
7%.................................          $2,000          17,000
14% + 1,190........................          17,000          30,000
25% + 3,010........................          30,000          50,000
33% + 8,010........................          50,000
spouse and filing separately
Marginal tax rate                                            But
7%.................................          $1,000           8,500
14% + $595.........................           8,500          15,000
25% + 1,505........................          15,000
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://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&amp;log=linklog&amp;to=http://www.hacienda.gobierno.pr/.
[FR Doc. E8-10022 Filed 5-6-08; 8:45 am]