[Federal Register: May 7, 2008 (Volume 73, Number 89)] [Rules and Regulations] [Page 25539-25542] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr07my08-15] ======================================================================= ----------------------------------------------------------------------- GENERAL SERVICES ADMINISTRATION 41 CFR Part 302-17 [FTR Amendment 2008-03; FTR Case 2008-302; Docket 2008-002, Sequence 1] RIN 3090-AI48 Federal Travel Regulation; Relocation Income Tax (RIT) Allowance Tax Tables--2008 Update AGENCY: Office of Governmentwide Policy, General Services Administration (GSA). ACTION: Final rule. ----------------------------------------------------------------------- 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 2008 RIT allowance for tax year 2007 to be paid to relocating Federal employees. DATES: Effective Date: This final rule is effective on May 7, 2008. Applicability date: January 1, 2008. FOR FURTHER INFORMATION CONTACT: The Regulatory Secretariat (VIR), Room 4035, GSA Building, Washington, DC 20405, telephone (202)208-7312, 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) 501-4755. Please cite FTR Amendment 2008-03, FTR case 2008-302. 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 previous years. 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: May 1, 2008. David L. Bibb, Acting 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 is revised to read as follows: [[Page 25540]] Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, as amended, 36 FR 13747, 3 CFR, 1971-1975 Comp., p. 586. 0 2. Revise Appendixes 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 2007 [Use the following table to compute the RIT allowance for Federal taxes, as prescribed in 302-17.8(e)(1), on Year 1 taxable reimbursements received during calendar year 2007.] -------------------------------------------------------------------------------------------------------------------------------------------------------- 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...................................................... $ 9,597 $18,107 $18,364 $30,153 $27,463 $42,942 $14,203 $21,913 15...................................................... 18,107 44,461 30,153 64,200 42,942 94,016 21,913 46,764 25...................................................... 44,461 95,997 64,200 142,780 94,016 167,442 46,764 84,076 28...................................................... 95,997 191,453 142,780 225,385 167,442 243,961 84,076 124,354 33...................................................... 191,453 390,566 225,385 405,567 243,961 404,547 124,354 205,412 35...................................................... 390,566 .......... 405,567 .......... 404,547 .......... 205,412 .......... -------------------------------------------------------------------------------------------------------------------------------------------------------- Appendix B to Part 302-17--State Tax Tables For RIT Allowance State Marginal Tax Rates by Earned Income Level--Tax Year 2007 (Use the following table to compute the RIT allowance for State taxes, as prescribed in 302-17.8(e)(2), on taxable reimbursements received during calendar year 2007. 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 2008 State Tax Handbook, pp. 259-274, available from CCH Inc., http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://tax.cchgroup.com/Books/default#S.) ---------------------------------------------------------------------------------------------------------------- Marginal tax rates (stated in percents) for the earned income amounts specified in each column.1 2 3 ----------------------------------------------------------------------------------------------------------------- $75,000 & Over State (or district) $20,000-$24,999 $25,000-$49,999 $50,000-$74,999 \4\ ---------------------------------------------------------------------------------------------------------------- Alabama............................. 5.00 5.00 5.00 5.00 Alaska.............................. 0.00 0.00 0.00 0.00 Arizona............................. 2.88 3.36 3.36 3.36 If single status, married filing 2.88 3.36 4.24 4.24 separately \5\..................... Arkansas............................ 6.00 7.00 7.00 7.00 California.......................... 2.00 4.30 9.30 9.30 If single status, married filing 2.00 9.30 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................ 6.00 8.50 8.50 8.50 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 If single status, married filing 6.25 6.45 6.45 6.45 separately \5\..................... 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 Michigan on or after October 1, 2007 4.35 4.35 4.35 4.35 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 [[Page 25541]] 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 3.92 4.34 separately \5\..................... Ohio................................ 3.895 4.546 4.546 5.194 Oklahoma............................ 5.650 5.650 5.650 5.650 Oregon.............................. 9.00 9.00 9.00 9.00 Pennsylvania........................ 3.07 3.07 3.07 3.07 Rhode Island \6\.................... 3.75 3.75 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 7.20 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 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 2008 State Tax Handbook, pp. 259-274, CCH, Inc., http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://tax.cchgroup.com/Books/default#S. \4\ This is an estimate. For earnings over $100,000, and for filing statuses other than those above, please consult actual tax tables. See 2008 State Tax Handbook, pp. 259-274, CCH, Inc., http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://tax.cchgroup.com/Books/default#S. \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 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 2007 tax year, taxpayers may elect to compute income tax liability based on a graduated rate schedule or an alternative flat tax equal to 7.5%. 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 301- 17.8(e)(1). This table is to be used for employees whose Year 1 occurred during calendar years 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006 or 2007.] -------------------------------------------------------------------------------------------------------------------------------------------------------- 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 [[Page 25542]] 35..................................................... 360,212 .......... 375,305 .......... 374,173 .......... 188,184 .......... -------------------------------------------------------------------------------------------------------------------------------------------------------- Appendix D to Part 302-17--Puerto Rico Tax Tables for RIT Allowance Puerto Rico Marginal Tax Rates by Earned Income Level--Tax Year 2007 (Use the following table to compute the RIT allowance for Puerto Rico taxes, as prescribed in 302-17.8(e)(4)(i), on taxable reimbursements received during calendar year 2007.) ------------------------------------------------------------------------ For married person living with spouse and filing jointly, married person not living with spouse, single person, or head of household Marginal tax rate -------------------------------------- But Percent Over not over -------------------------------------------------------------------- ------ 7%................................. $2,000 17,000 14% + 1,190........................ 17,000 30,000 25% + 3,010........................ 30,000 50,000 33% + 8,010........................ 50,000 ------------------------------------------------------------------------ ------------------------------------------------------------------------ For married person living with spouse and filing separately -------------------------------------- Marginal tax rate But Percent Over not over -------------------------------------------------------------------- ------ 7%................................. $1,000 8,500 14% + $595......................... 8,500 15,000 25% + 1,505........................ 15,000 25,000 33% + 4,005........................ 25,000 ------------------------------------------------------------------------ Source: Individual Income Tax Return 2007--Long Form; Commonwealth of Puerto Rico, Department of the Treasury,P.O. Box 9022501, San Juan, PR 00902-2501;http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.hacienda.gobierno.pr/. [FR Doc. E8-10022 Filed 5-6-08; 8:45 am] BILLING CODE 6820-14-P