Title 41, Part 302-17 — 17—Taxes on Relocation Expenses

Reimbursement for substantially all, and not exactly all, of the additional income taxes incurred as a result of a relocation.

Eligibility for the WTA and the RITA.

Limitations and Federal income tax treatments of various relocation reimbursements.

Where to file relocation expenses for State taxes.

When an expense is considered completed in a specific tax year.

Purpose of the WTA.

Relocation expenses covered by the WTA.

Procedures for calculation and payment of the WTA.

Purpose of the RITA.

Procedures for calculation and payment of the RITA.

CMTR calculation methodology.

Applicable State marginal tax rate and effect on the RITA and an employee's State tax return(s).

Applicable local marginal tax rate(s) used for calculation.

Income tax liability to the Commonwealth of Puerto Rico.

Income tax liability to the Commonwealth of the Northern Mariana Islands or any other territory or possession of the United States.

Procedures when a State treats an expense as taxable even though it is nontaxable under the Federal IRC.

Requirement to provide tax information to the agency to make the RITA calculation possible under the one-year process.

When to provide amended tax information to the agency.

Failure to provide required tax information to the agency.

RITA calculation methodology and procedures under the one-year process.

Definition of the terms “Year 1” and “Year 2” used in the two-year RITA process.

When WTA is optional under the two-year process.

Information to include on employee tax returns for Year 1 under the two-year process.

Requirement to provide tax information to the agency to make the RITA calculation possible under the two-year process.

Failure to provide required tax information to the agency.

How to claim the RITA under the two-year process.

RITA calculation methodology and procedures under the two-year process.

Reporting RITA and paying taxes on the RITA under the two-year process.

Agency responsibilities for taxes on relocation expenses.

Agency requirements if an employee fails to file and/or amend the required tax information prior to the required date.