[Federal Register Volume 70, Number 49 (Tuesday, March 15, 2005)]
[Rules and Regulations]
[Pages 12598-12600]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-5000]
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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.
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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:
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.
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.
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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
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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.
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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.]
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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
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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 ...........
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[[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.]
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Marginal tax rates (stated in percents) for the earned income amounts specified in each column. 1 2
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State (or district) $20,000-$24,999 $25,000-$49,999 $50,000-$74,999 $75,000 & Over \3\
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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
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(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.]
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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
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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 ...........
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Appendix D to Part 302-17--[Amended]
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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