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DoDEA Posts Updated RITA Information

posted March 18, 2020

DoDEA has updated information on its Web site regarding the application process for RITA, to include reference to the change in law last year that now allows incoming feds and retiring/separating employees to request reimbursements for taxes paid on moving allowances going back to January 2018. The article from DoDEA also provides specific contact information for those who wish to submit RITA claims or with questions about the RITA application process, telling those individuals to "email the DoDEA Travel/Debt Management Team at HQPCSRATVouchers@dodea.edu".

Below is the full article, by DoDEA staffer Claudia Shaw, as it appears on DoDEA Connects. You can also view DoDEA's RITA information at this page


From DoDEA CONNECTS

What you need to know about the Relocation Income Tax Allowance (RITA) and how to submit a claim


Authored by Claudia Shaw
Mar 18, 2020


The Relocation Income Tax Allowance (RITA) reimburses employees for any taxes that are owed that were not adequately reimbursed by the Withholding Tax Allowance (WTA) rates. The WTA calculation is based on the income tax withholding rate applicable to supplemental wages. This may be higher or lower than your actual tax rate.

The RITA, on the other hand, is based on your marginal tax rate, determined by your actual table income and filing status, which allows DoDEA to reimburse you for substantially all of your federal income taxes. The RITA also reimburses you for any additional state and local taxes that you incur as a result of your relocation, because they are not reimbursed in the WTA process.

What you need to know
1. RITA is not automatic. You must apply for it in the year after receiving taxable travel pay. For example, if you received taxable travel pay in 2018, you may file a RITA in 2019 after you have filed your 2018 taxes.
2. If Withholding Tax Allowance was elected, you must file a RITA claim within 120 days of the following calendar year. Failure to file a timely RITA claim will result in a debt owed to the Defense Finance and Accounting Service (DFAS) and collection of the entire amount of WTA paid on your behalf.
3. The method for calculating the RITA payment is based on the date you reported to your new duty location.
4. The amount of income reported on the certification form has to match the income tax documentation submitted with the RITA claim.
5. For employees who reported to the new duty location on or after Jan. 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.


RITA voucher submission
1) DD Form 1351-2 (Travel Voucher/Sub Voucher).
a) You must claim RITA in block 18.
b) Block 20 must be signed and dated by you and your reviewer/supervisor.
2) DD Form 1614 (Travel Authorization/Orders) with all amendments.
3) Include Direct Deposit Form SF 1199A. (view form here)
4) All W-2s (travel and payroll), including spouse's if filing jointly, for the year you are claiming RITA.
5) RITA Status Certification Form - reported to new duty location on/after Jan. 1, 2015.
6) (https://www.dfas.mil/dam/jcr:cdb0ba9c-e6e8-4096-b245-9b5477a74550/RITA%20Certification%20Statement%20After%201.1.2015%20(Oct%202015)%20v1.pdf)
7) Completed Federal Income Tax Return (Form 1040).
8) Completed state and local income tax returns if your travel pay was taxed by a state.
9) Submit your claim by email to HQPCSRATVouchers@dodea.edu


This DFAS e-tutorial provides instructions on how to fill out a RITA claim.
Part 1B: https://www.youtube.com/watch?v=8oPmuzB2wUE&feature=youtu.be
Part 2: https://www.youtube.com/watch?v=AavM7y6BHXc
Part 3: https://www.youtube.com/watch?v=7seCmgoz4kc


RITA eligibility expansion
DFAS has updated their website to reflect the RITA tax law changes.
A recent change in the law expands RITA eligibility to include four categories of travelers who were previously excluded: new appointees, senior executive service employees performing a "last move home," individuals returning from an overseas assignment for the purpose of separation from government service (return rights fit under this category), and individuals assigned under the Government Employees Training Act.

The change in law, which occurred Dec. 20, 2019, became effective Jan. 1, 2018. If employees paid taxes on civilian relocation entitlements which were reported as taxable income on a 2018 and/or a 2019 W-2 or W-2C, they are now eligible to file a RITA claim.


More information
For more information or if you have questions, email the DoDEA Travel/Debt Management Team at HQPCSRATVouchers@dodea.edu