Relocation Income Tax Allowance

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Relocation Income Tax Allowance (RITA)


Due to regulatory changes there will be two different documentation requirements when submitting a RITA claim, based on the report date to your new duty location.

For employees who reported to their new duty location on or after January 1, 2015 the RITA calculation will be based on taxable income from your Federal Income Tax Return (Form 1040) and the IRS published tax tables.  For employees who relocated prior to January 1, 2015, the RITA calculation will be based on your earned income amount and the GSA published tax tables.  For additional information regarding the changes to the RITA please see: General Services Administration Federal Register Vol. 79 No. 162

UPDATE: March 16, 2016:  Upon receipt of the annually updated tax tables issued by General Services Administration, we will process RITA claims for travelers with report dates prior to 1 January 2015 on a first in, first out basis.

When you relocate, most entitlements received are reported as taxable income to the Internal Revenue Service (IRS). Mandatory Federal Withholding Tax (FWT) and applicable Federal Insurance Contributions Act (FICA) and Medicare taxes are withheld from taxable entitlements. A Civilian Relocation W-2 showing entitlement (income) and taxes withheld will be issued for each calendar year that payment is received.You may also have to pay state and local taxes applicable to the old and new permanent duty stations.  You must report your Civilian Relocation W-2 as taxable income on your IRS Form 1040 in order to be eligible for a RITA.

To offset this burden, you should apply for a RITA. This allowance is designed to reimburse you for much of the additional federal, state, and local income taxes paid because of the relocation.

  • RITA is not automatic, you must apply for it.
  • If the only payment you received in a single tax year was a RITA payment then you are not entitled to file a RITA on that RITA payment.

If you received a Withholding Tax Allowance (WTA) entitlement, you must submit a RITA claim the following calendar year. The WTA entitlement is treated similar to an "advance" of the RITA entitlement. Calculating the RITA claim includes reduction by the amount of WTA. This may mean the WTA payment issued was excessive, thus requiring collection of the difference. It is important to file your RITA! The WTA is a debt that must be settled.

You may be entitled to more than one RITA entitlement if your travel entitlement reimbursement is spread over more than one calendar year. For example, if you receive taxable real estate entitlements for the sale of your residence at the old location in 2013 and are reimbursed for the purchase of a new residence at the new duty station in 2014 you would be eligible to file RITA claims for both 2013 and 2014 tax years.

If you reported to your new duty location prior to January 1, 2015 please submit the following documents:

If you reported to your new duty location on or after January 1, 2015, please submit the following documents:

A separate claim is required for...

  • Each relocation travel order (when multiple moves are involved)
  • Each tax year taxable entitlements were paid (other than RITA)

NOTE: In order to avoid processing delays, please ensure that the amount of income on the Certification Form, matches the income tax documentation submitted with the RITA claim. Your claim will be returned without action until you provide a corrected claim and/or additional documentation to support the claim.

To submit your RITA claim, use one of the following methods:

  1. Use the secure, online applicationTravel Voucher Direct
  2. Email: dfas.rome.jft.mbx.civrelo-vouchers@mail.mil
  3. Fax (216) 367-3422

    If DFAS Rome was not the paying office for your relocation entitlements, please mail the RITA claim to the office that processed yourrelocation claim and issuedthe W-2 for the claims.

 

Page updated March 16, 2016