What is RITA (Relocation Income Tax Allowance)?

During the course of your permanent change of station (PCS) move you are reimbursed for all or most of the expenses you incurred. At the end of the tax year you receive a W-2 form reflecting the total amount of reimbursements you received during the tax year. When filing your taxes, this W-2 is included in your income. As a result, your income is increased, and you have to pay additional taxes. The RITA reimburses you for these additional taxes.

What is WTA (Withholding Tax Allowance)?

WTA is an estimated partial prepayment of your RITA. These partial payments are made with each PCS voucher or lump sum travel order that is processed. The sum of the partial payments is netted against the RITA amount that is calculated. The intent of the WTA is to provide you a portion of the RITA during the course of the year. It should be noted that the WTA is different than the federal tax withholding that is done on your traditional or lump sum reimbursements. **Please note**; If your tax bracket is less than 20%, the estimated partial payment may exceed the relocation income tax allowance that is calculated at the end of the year. The excess amount must be repaid promptly by you upon notification by FMD.

How do I file RITA?

To file for the RITA, you will need to complete a SSF3206 Relocation Income Tax Allowance Certification (RITA), attach copies of all your W-2 forms (to include your salary, your spouse's salary, PCS, etc.) and submit it to the Relocation Branch, Financial Management Division. **Please note: Employees who completely write off their PCS move on their taxes and as result do not incur any additional tax liability from the relocation expense reimbursements, are not eligible for RITA. In addition, such employees who received withholding tax allowance (WTA) payments must promptly repay them.

Should I attach 1099’s to my RITA claim?

No.

If I was self employed, do I attach Schedule SE to my RITA claim?

Yes.

Can I fax the RITA?

Yes, the fax number is (202) 406-6110.

What is the mailing address if I do not fax or send the RITA via interoffice mail?

Financial Management Division/Employee Travel Claims Section 950 H Street, Suite 6300 Washington, DC 20223.

Will I receive any documentation indicating I was paid for my RITA?

Payment will be direct deposited into your bank account based on your banking information that is maintained in the master personnel system. It is the same bank account that your salary is deposited.

How will I receive my RITA reimbursement?

Upon certification of your RITA, a certification printout showing a breakdown of the RITA calculation will be sent to you in the mail from FMD.

Do I need to wait until I file my taxes before I file for RITA?

No.

Do I need to wait to receive reimbursement for RITA before I file my taxes?

No. The Service is not responsible for any late fees incurred by employees for failing to file their taxes on time.

How do I complete block 9B on the SSF3206?

Block 9B depends on how you file the W-2 on your taxes. Your tax advisor would be the best person to advise you on which state(s) you must include your PCS W-2 amount as income when filing your taxes. For example, if an employee transfers from Maryland to California. State Name Block: If you are claiming your PCS W-2 on your Maryland State Income Tax Return as additional income, you would note Maryland in the state name block. If you are claiming your PCS W2 on your California State Income Tax Return as additional income, you would note California in the state name block. If you are claiming your PCS W-2 on your Maryland and California State Income Tax Return, you would note Maryland and California in the state name block.If you are not claiming your PCS W-2 on any State Income Tax Return, you would note N/A in the state name block. Locality Name Block: If you are claiming your PCS W-2 on your Prince Georges County Local Income Tax Return as additional income, you would note Prince Georges County in the locality name block. If you are not claiming your PCS W-2 on a Local Income Tax Return as additional income, you would note N/A in the locality name block.

How do I complete block 9C on the SSF3206?

If you indicated a locality name in block 9B, you will need to complete this block. This means when you filed your local income taxes, you claimed the PCS W-2 on these taxes as additional income. You need to note the income tax percentage rate for the locality and what the rate is based on - income, state tax or federal tax.

How do I know the local income tax rate for a locality?

You will need to obtain this information from your tax advisor or local tax authority. FMD does not maintain this information.

Do I need to complete a SSF3200 in addition to the SSF3206?

No.

What signatures are required on the SSF3206?

Employee, spouse (if married and filing jointly) and an approving official. The approving official is defined as the supervisor that would typically approve your travel vouchers. The Chief, Relocation and Travel Services Branch, FMD is not the approving official for the SSF3206.

What worksheet number do I use?

You should use the next sequential worksheet number as if you were submitting a TDY or PCS voucher.