How does my agency calculate my RITA under the two-year process?
§ 302-17.67 How does my agency calculate my RITA under the two-year process?
(a) Your agency calculates your RITA after receipt of your RITA voucher.
(b) Your RITA is itself taxable income to you. To account for taxes on the RITA, your agency will gross-up your RITA by applying the CMTR to the final amount rather than the reimbursed amount.
(c) Thus, your agency calculates your RITA by multiplying the Combined Marginal Tax Rate (CMTR) (using the state and local tax tables most current at the time of the RITA calculation) by the total of all covered taxable relocation benefits during the applicable Year 1, and then subtracting your WTA(s), if any, from the same Year 1 from that total. That is:
Where
C = CMTR
R = Reimbursements, allowances, and direct payments to vendors covered by WTA during Year 1
Z = Total grossed-up WTAs paid during Year 1.
- If your agency offers you the choice, the WTA is optional to you. If the employee has declined the WTA, enter zero for element Z in the above calculation.
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