CFR > Title 41 - Public Contracts and Property Management > SUBTITLE F—Federal Travel Regulation System > CHAPTER 301—TEMPORARY DUTY (TDY) TRAVEL ALLOWANCES (parts 301-1 to 301-76) > SUBCHAPTER B—ALLOWABLE TRAVEL EXPENSES (parts 301-10 to 301-31) > PART 301-11—PER DIEM EXPENSES > SUBPART F—Income Tax Reimbursement Allowance (ITRA), Tax Years 1995 and Thereafter (§301-11.601 to §301-11.640) > 301-11.635—How should we calculate the ITRA?

301-11.635—How should we calculate the ITRA?

Use the documents prescribed in § 301-11.631 to calculate the ITRA as follows:
(a) Determine Federal, State and local marginal tax rates by using the procedures and the marginal tax tables established for the relocation income tax allowance in §§ 302-11.7, 302-11.8 and the appropriate RIT tax table(s) located at www.gsa.gov/ftrbulletin, or
(b) As calculated in the following illustration.
Example of calculating an employee's tax return using the marginal tax rate schedules in the state RIT tax table(s) located at www.gsa.gov/ftrbulletin:
For Tax Year 1995 and Thereafter
[Married Filing Joint Return]
Original Recalculated
1. Adjusted Gross Income (w/ travel reimbursement): $75,246 $75,246
2. Subtract travel reimbursement: (15,482)
3. Subtract personal exemptions and itemized or standard deductions (12,689) (12,689)
4. Adjusted taxable income 62,557 47,075
5. Tax liability on adjusted taxable income:
a. Federal (28%) 17,516 *7,061(15%)
b. State, VA (5.75% tax bracket) 3,597 2,707
c. Local: Not applicable 0 0
Code of Federal Regulations 60
d. Total 21,113 9,768
6. Difference of total of column 1 minus total of column 2: Additional Taxes Incurred due to travel reimbursement—$11,345
Total = ITRA—$11,345**
*Adjusted taxable income places employee in lower tax bracket.
**The ITRA reimbursement is taxable income for the year in which paid at the appropriate Federal, State and local income tax rates.

Code of Federal Regulations

[64 FR 32815, June 18, 1999, as amended by FTR Amdt. 2008-04, 73 FR 35953, June 25, 2008]