CFR

301-11.635—How should we calculate the ITRA?

Use the documents prescribed in § 301-11.631 to calculate the ITRA as follows:

(a) Determine Federal, State and local marginal tax rates by using the procedures and the marginal tax tables established for the relocation income tax allowance in §§ 302-11.7, 302-11.8 and the appropriate RIT tax table(s) located at www.gsa.gov/ftrbulletin, or

(b) As calculated in the following illustration.

Example of calculating an employee's tax return using the marginal tax rate schedules in the state RIT tax table(s) located at www.gsa.gov/ftrbulletin:

For Tax Year 1995 and Thereafter

	Original	Recalculated
[Married Filing Joint Return]
1. Adjusted Gross Income (w/ travel reimbursement):	$75,246	$75,246
2. Subtract travel reimbursement:		(15,482)
3. Subtract personal exemptions and itemized or standard deductions	(12,689)	(12,689)
4. Adjusted taxable income	62,557	47,075
5. Tax liability on adjusted taxable income:
a. Federal (28%)	17,516	*7,061(15%)
b. State, VA (5.75% tax bracket)	3,597	2,707
c. Local: Not applicable	0	0
Code of Federal Regulations 60
d. Total	21,113	9,768
6. Difference of total of column 1 minus total of column 2: Additional Taxes Incurred due to travel reimbursement—$11,345
Total = ITRA—$11,345**
*Adjusted taxable income places employee in lower tax bracket.
**The ITRA reimbursement is taxable income for the year in which paid at the appropriate Federal, State and local income tax rates.

Code of Federal Regulations

[64 FR 32815, June 18, 1999, as amended by FTR Amdt. 2008-04, 73 FR 35953, June 25, 2008]

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