Relocation income tax allowance tables published

The formulas federal employees need to calculate relocation income tax allowances were published by the General Services Administration Tuesday in the Federal Register. The relocation income tax allowance (RITA) is designed to reimburse federal travelers for federal, state and local income taxes incurred while relocating. When federal employees file reimbursement vouchers for moving costs, the government withholds taxes because the Internal Revenue Service treats the money as income. Employees must file a claim with their agency to get the withheld money back, and the agency calculates the tax allowance using the RITA tables. If too much money was withheld from the expense voucher, the employee gets a refund. If too little money was withheld, the employee gets a bill. The tables are updated annually to reflect changes in the federal, state and Puerto Rico income tax brackets and tax rates. Though usually published at the beginning of each year as part of the Federal Travel Regulations, which set government travel policy, this year's RITA tables were delayed because of a Bush administration stay on publishing new regulations before their review by an administration appointee. The RITA table numbers are retroactive to Jan. 1, 2001 and apply to relocation income tax allowance payments made on or after that date.