Relocation Income Tax Allowance (RITA)
The RITA reimburses an eligible transferred employee for the additional Federal, State, and local income taxes incurred as a result receiving taxable travel income.
Things you need to know:
- RITA is not automatic; you must apply for it in the year after receiving taxable travel pay.
- If you received a Withholding Tax Allowance (WTA) entitlement, you must submit a RITA claim the following calendar year. Failure to file a RITA claim after receiving WTA will result in a debt that must be settled, as will over estimating the tax rate for the year in question.
- The method for calculating the RITA payment is based on the date the employee reports to the new duty location.
- For employees who relocated prior to January 1, 2015, the RITA calculation is based on the earned income amount and the GSA published tax tables.
- For employees who reported to the new duty location on or after January 1, 2015, the RITA calculation is based on taxable income from the Federal Income Tax Return (Form 1040) (after exemptions and deductions) and the IRS published tax tables.
- The amount of income reported on the Certification Form has to match the income tax documentation submitted with the RITA claim
RITA Voucher Submission, both methods:
- DD Form 1351-2 (Travel Voucher/Sub Voucher)
- You must claim RITA in block 18
- Block 20 must be signed and dated by you and your reviewer/supervisor
- DD Form 1614 (Travel Authorization/Orders) with all amendments
- Current Electronic Funds Transfer (EFT) Information
- All W-2s (travel and payroll), including spouse’s if filing jointly, for the year you are claiming RITA.
Additional documentation requirements, reporting prior to January 1, 2015:
- RITA Status Certification Form- reported to new duty location prior to January 1, 2015
- Additional income documents (if applicable):
- Form 1099R Military Retirement (no other Form 1099s are considered)
- Schedule SE Self Employment Tax
- Cannot process until the GSA rates are released
Additional documentation requirements, reporting on or after January 1, 2015:
- RITA Status Certification Form-reported to new duty location on/after January 1, 2015
- Completed Federal income tax return (Form 1040)
Page updated October 20, 2016