[Federal Register Volume 72, Number 67 (Monday, April 9, 2007)]
[Rules and Regulations]
[Pages 17410-17413]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-6729]
[[Page 17410]]
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GENERAL SERVICES ADMINISTRATION
41 CFR Part 302-17
[FTR Amendment 2007-02; FTR Case 2007-302; Docket 2007-0002, Sequence
2]
RIN 3090-AI35
Federal Travel Regulation; Relocation Income Tax (RIT) Allowance
Tax Tables--2007 Update
AGENCY: Office of Governmentwide Policy, GSA.
ACTION: Final rule.
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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 2007 RIT allowance to be paid
to relocating Federal employees.
DATES: Effective Date: This final rule is effective April 9, 2007.
Applicability date: This final rule provides tax information for
filing 2006 Federal and State income taxes.
FOR FURTHER INFORMATION CONTACT: The Regulatory Secretariat (VIR), Room
4035, GSA Building, Washington, DC 20405, telephone (202) 501-4755, 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) 208-7638. Please cite FTR Amendment 2007-02, FTR case 2007-302.
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 2006.
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: March 23, 2007.
Lurita Doan,
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 Appendices 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 2006
[Use the following table to compute the RIT allowance for Federal taxes, as prescribed in Sec. 302-17.8(e)(1), on Year 1 marginal taxable
reimbursements received during calendar year 2006]
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Marginal tax rate Single taxpayer Head of household Married filing Married filing
------------------------------------------------------------------------------------------------------------- jointly/qualifying separately
widows & 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 B to Part 302-17--State Tax Tables for RIT Allowance
[[Page 17411]]
State Marginal Tax Rates by Earned Income Level--Tax Year 2006
[Use the following table to compute the RIT allowance for State taxes, as prescribed in Sec. 302-17.8(e)(2),
on taxable reimbursements received during calendar year 2006. 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 2007 State Tax Handbook, pp. 255-270, available from CCH Inc., http://tax.cchgroup.com/Books/default 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...................................... 3.04 3.04 3.55 3.55
If single status, married filing 3.04 3.55 4.48 4.48
separately \5\..........................
Arkansas..................................... 6.00 7.00 7.00 7.00
California................................... 2.00 6.00 9.30 9.30
If single status, married filing 6.00 8.00 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......................... 7.00 7.00 8.70 8.70
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
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................................... 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 4.34 4.34
separately \5\..........................
Ohio......................................... 4.083 4.083 4.764 5.444
Oklahoma..................................... 6.25 6.25 6.25 6.25
Oregon....................................... 9.00 9.00 9.00 9.00
Pennsylvania................................. 3.07 3.07 3.07 3.07
Rhode Island \6\............................. 3.75 7.00 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 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
[[Page 17412]]
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 2007 State Tax Handbook, pp. 255-270, 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 2007 State Tax Handbook, pp. 255-270, 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 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).
Effective for the 2006 tax year, tax payers may elect to compute income tax liability based on a graduated
rate schedule or an alternative flat tax equal to 8%.
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 Sec.
302-17.8(e)(1). This table is to be used for employees whose Year 1 occurred during calendar years 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005,
or 2006]
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Marginal tax rate Single taxpayer Head of household Married filing Married filing
------------------------------------------------------------------------------------------------------------- jointly/qualifying separately
widows & widowers ---------------------
But not But not ----------------------
Percent Over over Over over But not Over But not
Over over over
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10.............................................................. $9,287 $17,545 $18,060 $29,399 $26,173 $41,393 $14,049 $21,441
15.............................................................. 17,545 43,394 29,399 62,576 41,393 91,201 21,441 45,388
25.............................................................. 43,394 93,101 62,576 138,856 91,201 162,117 45,388 81,616
28.............................................................. 93,101 183,867 138,856 216,022 162,117 233,656 81,616 119,660
33.............................................................. 183,867 376,616 216,022 389,045 233,656 387,765 119,660 197,483
35.............................................................. 376,616 ......... 389,045 ......... 387,765 ......... 197,483 .........
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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 2006
[Use the following table to compute the RIT allowance for Puerto Rico taxes, as prescribed in Sec. 302-
17.8(e)(4)(i), on taxable reimbursements received during calendar year 2006.]
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For married person living with For married person living with
spouse and filing jointly, spouse and filing separately
married person not living with -------------------------------
Marginal tax rate spouse, single person, or head
of household
-------------------------------- Over But not over
Over But not 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 2006--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_y_formularios/formularios.html.
[[Page 17413]]
[FR Doc. E7-6729 Filed 4-6-07; 8:45 am]
BILLING CODE 6820-14-P