[Federal Register Volume 71, Number 36 (Thursday, February 23, 2006)]
[Rules and Regulations]
[Pages 9262-9265]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-1677]
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GENERAL SERVICES ADMINISTRATION
41 CFR Part 302-17
[FTR Amendment 2006-01; FTR Case 2006-301]
RIN 3090-AI22
Federal Travel Regulation; Relocation Income Tax (RIT) Allowance
Tax Tables--2006 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 are being updated 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 2006 RIT allowance to be paid to
relocating Federal employees.
DATES: Effective Date: This final rule was effective on January 1,
2006.
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 Patrick McConnell, Office of
Governmentwide Policy, Travel Management Policy (MTT), Washington, DC
20405, telephone (202) 501-2362. Please cite FTR Amendment 2006-01, FTR
case 2006-301.
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
[[Page 9263]]
payment of the RIT allowance are contained in the Federal Travel
Regulation (41 CFR 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 RIT
allowance for employees who are taxed in 2005 on moving expense
reimbursements.
B. Executive Order 12866
The General Services Administration (GSA) has determined that this
final rule is not a significant regulatory action for the purposes of
Executive Order 12866 of September 30, 1993.
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 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: February 9, 2006.
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 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, 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 2005
[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 2005.]
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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
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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 B to Part 302-17--State Tax Tables for RIT Allowance
State Marginal Tax Rates by Earned Income Level--Tax Year 2005
[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 as a guide for employees who received
covered taxable reimbursements during calendar year 2005. The rates shown below are for married filing jointly
and if the state has a specific single rate, it is shown. For more specific information or if an employee is in
a different filing status, please see the 2006 State Tax Handbook, pp. 258-274, CCH Inc., http://tax.cchgroup.com/Books/default.]
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Marginal tax rates (stated in percents) for the earned income amounts specified in each column.\1\ \2\ \3\
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$75,000 & over
State (or District) $20,000-24,999 $25,000-49,999 $50,000-74,999 \4\
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Alabama............................. 5.00 5.00 5.00 5.00
Alaska.............................. 0.00 0.00 0.00 0.00
Arizona............................. 3.20 3.20 3.74 3.74
If single status, married filing 3.20 3.74 4.72 4.72
separately \5\.................
Arkansas............................ 6.00 7.00 7.00 7.00
California.......................... 2.00 6.00 8.00 9.30
If single status, married filing 6.00 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................ 7.50 9.00 9.00 9.00
Florida............................. 0.00 0.00 0.00 0.00
Georgia............................. 6.00 6.00 6.00 6.00
Hawaii.............................. 6.80 7.60 7.90 8.25
If single status, married filing 7.60 7.90 8.25 8.25
separately \5\.................
[[Page 9264]]
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.............................. 3.50 6.25 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
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
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.......................... 6.00 6.00 6.00 6.00
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 4.34 4.34
separately \5\.................
Ohio................................ 4.27 4.983 4.983 5.693
Oklahoma \6\........................ 6.65 6.65 6.65 6.65
Oregon.............................. 9.00 9.00 9.00 9.00
Pennsylvania........................ 3.07 3.07 3.07 3.07
Rhode Island \7\.................... 25.00 25.00 25.00 25.00
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................................ 7.00 7.00 7.00 7.00
Vermont............................. 3.60 3.60 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
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(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 2006 State Tax Handbook, pp. 258-274, CCH, Inc., http://tax.cchgroup.com/Books/default.
\4\ This is an estimate. For earnings over $100,000, and for filing statuses other than those above, please
consult actual tax tables. See 2006 State Tax Handbook, pp. 258-274, CCH, Inc., http://tax.cchgroup.com/Books/default default.
\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 2005 personal income tax rates shown here for Oklahoma follow Method 1 only. For information on Method
2, see the 2006 State Tax Handbook, pp. 258-274, CCH, Inc., http://tax.cchgroup.com/Books/default.
\7\ The income tax rate for Rhode Island is 25 percent of Federal income tax rates, including capital gains
rates and any another 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).
[[Page 9265]]
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 2006
[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 1996, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004
or 2005.]
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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
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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
35.............................................. 360,212 ........... 375,305 ........... 374,173 ........... 188,184 ...........
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Appendix D to Part 302-17--Puerto Rico Tax Tables for RIT Allowance
Puerto Rico Marginal Tax Rates by Earned Income Level--Tax Year 2005
[The following table is to be used to determine the Puerto Rico marginal tax rate for computation of the RIT
allowance as prescribed in Sec. 302-17.8(e)(4)(i).]
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Marginal tax rate For married person For married person
------------------------------------------------------------- living with spouse and living with spouse and
filing jointly, married filing separately
person not living with -------------------------
spouse, single person,
Percent or head of household
-------------------------- Over But not
But not over
Over over
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10.......................................................... $2,000 $17,000 $1,000 $8,500
15.......................................................... 17,000 30,000 8,500 15,000
28.......................................................... 30,000 50,000 15,000 25,000
33.......................................................... 50,000 ........... 25,000 ...........
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Source: Individual Income Tax Return 2005--Long Form; Commonwealth of Puerto Rico, Department of the Treasury,
P.O. Box 9022501, San Juan, PR 00902-2501; http://www.hacienda.gobierno.pr/planillas_individuo.asp.
[FR Doc. 06-1677 Filed 2-22-06; 8:45 am]
BILLING CODE 6820-14-P