41 CFR § 301-11.602 - Tax consequences of extended TDY.
---
identifier: "/us/cfr/t41/s301-11.602"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "41 CFR § 301-11.602 - Tax consequences of extended TDY."
title_number: 41
title_name: "Public Contracts and Property Management"
section_number: "301-11.602"
section_name: "Tax consequences of extended TDY."
chapter_number: 301
chapter_name: "TEMPORARY DUTY (TDY) TRAVEL ALLOWANCES"
subchapter_number: "B"
subchapter_name: "ALLOWABLE TRAVEL EXPENSES"
part_number: "301-11"
part_name: "11—SUBSISTENCE EXPENSES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 5702; 5 U.S.C. 5703; 5 U.S.C. 5707; 5 U.S.C. 5707a."
regulatory_source: "FTR Case 2025-05, 90 FR 56893, Dec. 8, 2025, unless otherwise noted."
cfr_part: "301-11"
---
# 301-11.602 Tax consequences of extended TDY.
(a) For a taxable extended TDY assignment, all travel expense allowances, reimbursements, and direct Government payments made on the employee's behalf in connection with the assignment become taxable income, starting from the date the assignment is recognized as exceeding one year. The agency will reimburse the employee for substantially all income taxes incurred as a result of their taxable extended TDY assignment, through two components:
(1) Withholding Tax Allowance (WTA); and
(2) Extended TDY Tax Reimbursement Allowance (ETTRA).
(b) The WTA and ETTRA cover only TDY benefits described in this subchapter. On an extended TDY assignment, the employee is not eligible for relocation benefits they would have received on a permanent relocation.