GSA publishes relocation tax tables

The formulas needed to calculate relocation income tax allowances were published by the General Services Administration Friday 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 claims with their agencies to get the withheld money back, and the agency calculates the tax allowance using the RITA tables. The tables are updated annually to reflect changes in the federal, state and Puerto Rico income tax brackets and tax rates. The RITA tax table numbers became effective Jan. 1, 2002.