[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: 41CFR302-17.13] [Page 221-224] TITLE 41--PUBLIC CONTRACTS AND PROPERTY MANAGEMENT CHAPTER 302--RELOCATION ALLOWANCES PART 302-17_RELOCATION INCOME TAX (RIT) ALLOWANCE--Table of Contents Sec. 302-17.13 Source references. The following references or publications have been used as source material for this part. [[Page 222]] (a) Internal Revenue Code (IRC), section 164(a)(3) (26 U.S.C. 164(a)(3)) pertaining to the deductibility of State and local income taxes, and section 217 (26 U.S.C. 217), pertaining to moving expenses. (b) Internal Revenue Service Publication 521, ``Moving Expenses.'' (c) Internal Revenue Service, Circular E, ``Employer's Tax Guide.'' (d) Department of the Treasury Financial Manual, TFM 3-5000. (e) 31 CFR 215.2 (5 U.S.C. 5516, 5517, and 5520). 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.] -------------------------------------------------------------------------------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- 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 ........... -------------------------------------------------------------------------------------------------------------------------------------------------------- [FTR Amdt. 2006-01, 71 FR 9263, Feb. 23, 2006] 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.] ---------------------------------------------------------------------------------------------------------------- Marginal tax rates (stated in percents) for the earned income amounts specified in each column. 1,2,3 ----------------------------------------------------------------------------------------------------------------- State (or District) $20,000-24,999 $25,000-49,999 $50,000-74,999 $75,000 & over \4\ ---------------------------------------------------------------------------------------------------------------- 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, 3.20 3.74 4.72 4.72 married filing separately \5\......... Arkansas.................... 6.00 7.00 7.00 7.00 California.................. 2.00 6.00 8.00 9.30 If single status, 6.00 9.30 9.30 9.30 married filing 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, 7.60 7.90 8.25 8.25 married filing separately \5\......... Idaho....................... 7.40 7.80 7.80 7.80 If single status, 7.80 7.80 7.80 7.80 married filing 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, 6.25 6.45 6.45 6.45 married filing separately \5\......... Kentucky.................... 5.80 5.80 5.80 6.00 Louisiana................... 2.00 4.00 6.00 6.00 [[Page 223]] If single status, 4.00 6.00 6.00 6.00 married filing separately \5\......... Maine....................... 7.00 8.50 8.50 8.50 If single status, 8.50 8.50 8.50 8.50 married filing 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, 7.05 7.05 7.85 7.85 married filing 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, 5.12 6.84 6.84 6.84 married filing 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, 1.75 5.525 5.525 6.370 married filing 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, 6.85 6.85 6.85 6.85 married filing separately \5\......... North Carolina.............. 7.00 7.00 7.00 7.00 If single status, 7.00 7.00 7.75 7.75 married filing separately \5\......... North Dakota................ 2.10 2.10 3.92 3.92 If single status, 2.10 3.92 4.34 4.34 married filing 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, 3.60 7.20 8.50 8.50 married filing 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 ---------------------------------------------------------------------------------------------------------------- (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. \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 224]] [FTR Amdt. 2006-01, 71 FR 9263, Feb. 23, 2006] 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.] -------------------------------------------------------------------------------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- 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 ........... -------------------------------------------------------------------------------------------------------------------------------------------------------- [FTR Amdt. 2006-01, 71 FR 9263, Feb. 23, 2006] 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).] ---------------------------------------------------------------------------------------------------------------- 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 ---------------------------------------------------------------------------------------------------------------- 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 ........... ---------------------------------------------------------------------------------------------------------------- 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. [FTR Amdt. 2006-01, 71 FR 9263, Feb. 23, 2006] [[Page 225]]