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U.S. Geological Survey Instructional Memorandum

No. OFM-96-03

Date: March 27, 1996

Subject: Relocation Income Tax Rates

Reference: 340-6-A-H

The General Services Administration (GSA) has issued an amendment to the Federal Travel Regulations (FTR) which provides Federal, State and Puerto Rico tax rates to be used in calculating the Relocation Income Tax (RIT) allowance payments for calendar year 1996.

The payment of a RIT Allowance is compensation for eligible transferred employees as a result of taxes incurred by the employee on certain travel and transportation expenses and relocation allowances which are reimbursed by the Government.

Once the employee receives his/her W-2 for the calendar year in which he/she received the relocation reimbursement, the employee should file a travel voucher for the final RIT allowance. The voucher should have the statement "RIT Claim for 19__". The Office of Financial Management will calculate the amount of the RIT. As supporting documentation, the employee should submit a copy of Form 9-3027 (Relocation Income Tax Certification Form), a copy of the pertaining travel authorization, a copy of his/her W-2 (and spouse's W-2 if filing a joint tax return), and/or a copy of Schedule SE-1040 for any self-employment income.

Instructions on how to calculate the RIT allowance are contained in the FTR 302-11 and Financial Administration Memorandum No. 88-49, dated June 8, 1988, and Financial Administration Memorandum No. 93-081, dated December 28, 1993.

If you have any questions, please call Carolyn Lee on (703) 648-7679.

STATE MARGINAL TAX RATES BY EARNED INCOME LEVEL-TAX YEAR 1995

The following table is to be used to determine the State marginal tax rates for calculation of the RIT allowance as prescribed in 302-11.8(e)(2). This table is to be used for employees who received covered taxable reimbursements during calendar year 1995.

Marginal tax rates (stated in percents) for the earned income amounts

specified in each column [1][2]

State (or district)

$20,000-$24,999 $25,000-$49,999 $50,000-$74,999 $75,000 and over

1. Alabama .......................... 5 5 5 5

2. Alaska ........................... 0 0 0 0

3. Arizona .......................... 3.25 4 5.05 6.9

If single status[3].............. 4 5.05 6.4 6.9

4. Arkansas ......................... 4.5 7 7 7

If single status[3].............. 6 7 7 7

5. California ....................... 2 4 8 11

If single status[3].............. 4 9.3 9.3 11

6. Colorado ......................... 5 5 5 5

7. Connecticut ...................... 4.5 4.5 4.5 4.5

8. Delaware ......................... 6 7.6 7.7 7.7

9. District of Columbia ............. 8 9.5 9.5 9.5

10. Florida .......................... 0 0 0 0

11. Georgia .......................... 6 6 6 6

12. Hawaii ........................... 8 9.5 10 10

If single status[3].............. 9.5 10 10 10

13. Idaho ............................ 7.5 7.8 8.2 8.2

14. Illinois ......................... 3 3 3 3

15. Indiana .......................... 3.4 3.4 3.4 3.4

16. Iowa ............................. 6.8 7.55 9.98 9.98

If single status[3].............. 7.2 8.8 9.98 9.98

17. Kansas ........................... 3.5 6.25 6.25 6.45

If single status[3].............. 4.4 7.75 7.75 7.75

18. Kentucky ......................... 6 6 6 6

19. Louisiana ........................ 2 4 4 6

If single status[3].............. 4 4 6 6

20. Maine ............................ 4.5 7 8.5 8.5

If single status[3].............. 8.5 8.5 8.5 8.5

21. Maryland ......................... 5 5 5 5

22. Massachusetts .................... 5.95 5.95 5.95 5.95

23. Michigan ......................... 4.4 4.4 4.4 4.4

24. Minnesota ........................ 6 8 8 8.5

If single status[3].............. 8 8 8.5 8.5

25. Mississippi ...................... 5 5 5 5

26. Missouri ......................... 6 6 6 6

27. Montana .......................... 6 9 10 11

28. Nebraska ......................... 3.65 5.60 7.35 7.75

If single status[3].............. 5.60 7.35 7.60 7.75

29. Nevada ........................... 0 0 0 0

30. New Hampshire .................... 0 0 0 0

31. New Jersey ....................... 1.7 2.125 2.975 6.58

If single status[3].............. 1.7 4.25 6.013 6.58

32. New Mexico ....................... 3.2 6 7.1 8.5

If single status[3].............. 6 7.1 7.9 8.5

33. New York ......................... 4.55 7.594 7.594 7.594

If single status[3].............. 7.594 7.594 7.594 7.594

34. North Carolina ................... 6 7 7 7.75

35. North Dakota ..................... 14 14 14 14

[See Footnote 4]

36. Ohio ............................. 2.972 4.457 5.201 7.5

37. Oklahoma ......................... 4 7 7 7

If single status[3].............. 7 7 7 7

38. Oregon ........................... 9 9 9 9

39. Pennsylvania ..................... 2.8 2.8 2.8 2.8

40. Rhode Island ..................... 27.5 27.5 27.5 27.5

[See Footnote 5]

41. South Carolina .................. 7 7 7 7

42. South Dakota .................... 0 0 0 0

43. Tennessee ....................... 0 0 0 0

44. Texas ........................... 0 0 0 0

45. Utah ............................ 7.2 7.2 7.2 7.2

46. Vermont ......................... [See Footnote 6]

47. Virginia ........................ 5 5.75 5.75 5.75

48. Washington ...................... 0 0 0 0

49. West Virginia ................... 4 4.5 6 6.5

50. Wisconsin........................ 6.55 6.93 6.93 6.93

51. Wyoming.......................... 0 0 0 0

[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 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 ap propriate marginal tax rate as provided in 302-11.8(e)(2)(ii).

[3] This rate applies only to those individuals certifying that they will file under a single status within the States where they will pay income taxes. All other taxpayers, regardless of filing status, will use the other rate shown.

[4] The income tax rate for North Dakota is 14 percent of Federal income tax liability for all employees. Rates shown as a percent of Federal income tax liability must be converted to a percent of income as provided in

302-11.8(e)(2)(iii).

[5] The income tax rate for Rhode Island is 27.5 percent of Federal income tax liability for all employees. Rates showi as a percent of Federal income tax liability must be converted to a percent of income as provided in

302-11.8(e)(2)(iii).

[6] The income tax rate for Vermont is 25 percent of Federal income tax liability for all employees. Rates showon as a percent of Federal income tax liability must be converted to a percent of income as provided in

302-11.8(e)(2)(iii).

FEDERAL MARGINAL TAX RATES BY EARNED INCOME LEVEL AND FILING STATUS-TAX YEAR 1995

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 302-11.8(e)(1). This table is to be used for employees whose Year 1 occurred during calendar year 1995.

Marginal

tax rate

(percent)

Single taxpayer

Heads of Household

Married filing jointly/qualifying widows and widowers

Married filing

separately

Over

But not over

Over

But not over

Over

But not over

Over

But not over

15........

28........

31........

36........

39.6......

$ 6,643 30,783 68,684

139,546

283,746

$ 30,783

68,684

139,546

283,746

.........

$ 11,937

44,304

102,201

163,966

294,200

$ 44,304

102,201

163,966

294,200

.........

$ 16,387

57,249

119,362

173,514

286,217

$ 57,249

119,362

173,514

286,217

.........

$ 8,171

28,637

59,017

88,341

147,650

$ 28,637

59,017

88,341

147,650

.........

FEDERAL MARGINAL TAX RATES BY EARNED INCOME LEVEL AND FILING STATUS-TAX YEAR 1996

The following table is to used to determine the Federal marginal tax rate for Year 2 for computation of the RIT allowance as prescribed in 302-11.8(e)(1). This table is to be used for employees whose Year 1 occured during calendar year 1987, 1988, 1989, 1990, 1991, 1992, 1993, 1994, or 1995.

Marginal

tax rate

(percent)

Single taxpayer

Heads of Household

Married filing jointly/qualifying widows and widowers

Married filing

separately

Over

But not

over

Over

But not

over

Over

But not

over

Over

But not

over

15........

28........

31........

36........

39.6......

$ 6,885 31,807 70,867

144,170

292,883

$ 31,807

70,867

144,170

292,883

..........

$ 12,295

45,572

105,805

168,990

301,968

$ 45,572

105,805

168,990

301,968

..........

$ 17,027

59,055

123,190

179,414

295,681

$ 59,055

123,190

179,414

295,681

..........

$ 8,229

29,600

61,245

90,611

150,779

$ 29,600

61,245

90,611

150,779

..........

PUERTO RICO MARGINAL TAX RATES BY EARNED INCOME LEVEL-TAX YEAR 1995

The following table is to be used to determine the Puerto Rico marginal tax rate for computation of the RIT allowance as prescribed in 302-11.8(e)(4)(i).

Marginal tax rate

(percent)

Single filing status

Any other filing status

Over

But not over

Over

But not over

12....................18.................. ..

31....................

33....................

............................. ..........

$ 25,000

.............

$ 25,000 ............. .............

..........................

$ 25,000 $ 50,000

$ 25,000

............. $ 50,000

............


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