Relocation Income Tax Allowance (RITA)
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.
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 a RITA payment is the only relocation entitlement received in a tax year, do not do anything. You cannot claim a RITA on that 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 2012 and are reimbursed for the purchase of a new residence at the new duty station in 2013 you would be eligible to file RITA claims for both 2012 and 2013 tax years.
To file for RITA, complete and submit the following documents:
- Travel Voucher, DD Form 1351-2...
- Must claim RITA in block 18
- Block 20 must be signed and dated by you and your supervisor.
- Relocation Income Tax Allowance (RITA) Status Certification Form.
- Copy of all W-2's for the year in which you are paid relocation entitlements for which you are claiming RITA (include spouse's if filing jointly).
- Copy of the IRS Schedule SE from self-employment income, if applicable (include spouse's if filing jointly) .
- One copy of Civilian Relocation travel orders, DD Form 1614, include original and all amendments.
- One copy of 1099R, only if for military retirement income. (Do not include interest income).
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)
Fax to DFAS Rome at 216-367-3422 / DSN: 580-7833. If DFAS Rome was not the paying office for your relocation entitlements, please mail the RITA claim to the office that processed your relocation claim and issued the W-2 for the claims.