[Code of Federal Regulations]

[Title 41, Volume 4]

[Revised as of July 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 41CFR302-14.7]



[Page 198-199]

 

           TITLE 41--PUBLIC CONTRACTS AND PROPERTY MANAGEMENT

 

                   CHAPTER 302--RELOCATION ALLOWANCES

 

PART 302-14_HOME MARKETING INCENTIVE PAYMENTS--Table of Contents

 

             Subpart A_Payment of Incentive to the Employee

 

Sec.  302-14.7  Are there tax consequences when I receive a home marketing 

incentive payment?



    Yes, the home marketing incentive payment is considered income. 

Consequently, you will be taxed, and your agency will withhold income 

and employment taxes, on the home marketing incentive payment. You will



[[Page 199]]



not, however, receive a withholding tax allowance (WTA) to offset the 

withholding on your home marketing incentive payment, nor will you 

receive a relocation income tax (RIT) allowance payment for 

substantially all of your Federal, state and local income taxes on the 

incentive payment.