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Relocating

Are you considering relocating your federal career - either by your choice or by Uncle Sam? There are practical issues and concerns to think about when deciding whether or not to relocate. Others have done it while still others have not. This forum will allow for all to offer their insight, post their questions, and help each other out.

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GWPDA  
#1 Posted : Friday, May 17, 2019 6:06:12 AM(UTC)
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Has anyone gone thru the RITA process yet? How did it go?
FS0201  
#2 Posted : Friday, May 17, 2019 6:22:02 AM(UTC)
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Originally Posted by: GWPDA Go to Quoted Post
Has anyone gone thru the RITA process yet? How did it go?


I returned from OCONUS in 2018. After filing taxes (and then amendment), I submitted my paperwork to DFAS for RITA. Two weeks later they rejected it saying that the amount on the 1040 did not match the combined amounts from the W-2, and that I needed to resubmit all of the documentation with correct information. I called and explained that the amount on 1040 wouldn't match, because I had filed an amendment. The contact person was less than helpful...basically saying go to base legal, hire a lawyer, talk to my CPA. Finally, I figured that it was useless and just resubmitted everything as is to the designated email and explained that they needed to look at the amendment, rather than the 1040. $$ was deposited into my account two days later.
The excuse of, "I read it on FederalSoup..." won't work. Please do your due diligence.
GWPDA  
#3 Posted : Saturday, May 18, 2019 10:18:52 AM(UTC)
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Good to know. I had thought I was asking for general knowledge, anticipating a retirement return to the mainland, but I've just gotten a referral for a job -on- the mainland - which opens up a whole 'nother bunch of issues. I think I'll just stay status quo til something actually happens!
RVRGRL  
#4 Posted : Sunday, May 19, 2019 10:07:42 PM(UTC)
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Latest and greatest (From slides I just received from CPAC). I've also received an excel spreadsheet that estimates tax burden...I don't see this posted on DFAS yet.
https://www.dfas.mil/civ...holdingtaxallowance.html

Process w/no WTA:
-Civilian employee accepts orders for PCS transfer
-Employee reports to new duty station during Year 1
-Employee declines WTA with DD Form 1351-2 (Travel Voucher)
-DFAS adjudicates voucher with IATS information
-DFAS makes 22% tax, 6.2% FICA, and 1.45% Medicare IRS withholding payment
-Employee receives travel settlement offset by withholdings, and monitors Government Travel Card balance
-DFAS issues Year 1 W-2 NLT 31 January Year 2 showing move costs as taxable income, income tax, FICA, and Medicare withholdings
-Employee files Year 1 federal (and state) tax return reporting W-2 income
-Employee files RITA claim with DFAS (DD Form 1351-2, DD Form 1614, completed tax return, W-2s, RITA Certificate)
-DFAS calculates RITA payment using IRS/state tax tables to determine additional income tax paid on move cost amount
-RITA paid to employee (RITA payment is taxable income subject to withholding, reportable on Year 2 tax return filed during Year 3)

Process w/WTA:
-Civilian employee accepts orders for PCS transfer
-Employee reports to new duty station during Year 1
-Employee elects WTA with DD Form 1351-2 (Travel Voucher)
-DFAS adjudicates voucher with IATS information
-DFAS makes 22% tax, 6.2% FICA, and 1.45% Medicare IRS withholding payment
-Employee receives travel settlement including WTA (≈28.2% × Cost of Move) offset by withholdings, and monitors Government Travel Card balance
-DFAS issues Year 1 W-2 NLT 31 January Year 2 showing move costs (including WTA) as taxable income, income tax, FICA, and Medicare withholdings
-Employee files Year 1 federal (and state) tax return reporting W-2 income
-Employee files RITA claim with DFAS (DD Form 1351-2, DD Form 1614, completed tax return) NLT 30 April Year 2 (29 April if Leap Year)
-DFAS calculates RITA payment using IRS tax tables to determine additional income tax paid on move cost amount, deducts WTA payment
-RITA paid to employee (RITA payment is taxable income subject to withholding, reportable on Year 2 tax return filed during Year 3)

thanks 3 users thanked RVRGRL for this useful post.
DaVinci95 on 5/20/2019(UTC), USTrans on 5/21/2019(UTC), JDSIII on 5/21/2019(UTC)
JDSIII  
#5 Posted : Monday, May 20, 2019 3:59:37 AM(UTC)
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Nice breakdown. I've also received that spreadsheet, once uploaded to the website it should help clarify the issue.
thanks 1 user thanked JDSIII for this useful post.
USTrans on 5/21/2019(UTC)
USTrans  
#6 Posted : Tuesday, May 21, 2019 8:48:00 AM(UTC)
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Thanks for the additional information. Would you (or anyone) email the excel spreadsheet if I PM you my email address? Thanks.
JDSIII  
#7 Posted : Tuesday, May 21, 2019 10:25:55 PM(UTC)
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Sure, send me your e-mail address.
USTrans  
#8 Posted : Saturday, May 25, 2019 8:41:45 PM(UTC)
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Originally Posted by: JDSIII Go to Quoted Post
Sure, send me your e-mail address.


Thanks JDS...I sent you a PM. Thanks again.
DoD_Dave  
#9 Posted : Thursday, October 24, 2019 1:25:04 PM(UTC)
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Just thinking about the taxable PCS process gives me a major headache which is why I would rather have relocation incentive!
B-Rad  
#10 Posted : Saturday, November 30, 2019 10:58:42 AM(UTC)
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so i just got my amended w2 in the mail for my PCS from March 2018. it looks like they added an additional $13k to my travel w2 (guessing this was all HHG they added) and no federal income taxes were withheld from this, meaning i now owe about $3,000 more.

what are my options at this point? any way to file for 'more' RITA (i think i got about $500 back from my previous RITA claim) since I now have to pay an additional $3,000 in taxes? Also what is the deadline for this, just has to be before i file next years taxes or what? thank you!

Edited by user Saturday, November 30, 2019 11:00:14 AM(UTC)  | Reason: Not specified

snowrider52  
#11 Posted : Monday, December 2, 2019 8:51:42 AM(UTC)
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I just got a an AOP debt notice that I owe $10619 from $35815 HHG shipment to Alaska in 2018. This includes income tax, FICA, and Medicare. How is everyone dealing with this. I still haven’t got the official debt letter yet.
RMZB  
#12 Posted : Saturday, March 21, 2020 5:07:28 AM(UTC)

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Originally Posted by: snowrider52 Go to Quoted Post
I just got a an AOP debt notice that I owe $10619 from $35815 HHG shipment to Alaska in 2018. This includes income tax, FICA, and Medicare. How is everyone dealing with this. I still haven’t got the official debt letter yet.


I got a "notification" in Oct 2019 for my Dec 2018 PCS that I would owe a little over 4K in debt to DFAS because they paid taxes "on my behalf". Didn't get a debt letter until March 2020. Called and talked to DFAS and asked what my options were and she basically said pay the debt. I said how about filing a RITA claim and she said that is only to offset taxes due to the Govt from your PCS but we already paid them for you. I said well, can I file a RITA claim against the 4K DFAS sent me? She said no. I then said well I wish you hadn't paid taxes to the IRS "on my behalf" because then I could file a RITA claim and hope to get some of that money back. I filed a RITA claim anyway with my 2019 taxes a few weeks ago and included the debt letter from DFAS. I'm sure nothing will come of it and I'll pay the debt and move on but DFAS really needs to figure this out as I've talked to about three people there and none of them seem to know what to do when it comes to RITA.
SpaceBall  
#13 Posted : Saturday, April 4, 2020 11:55:45 AM(UTC)

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I completed the entire process, from filing the amended tax return, the DFAS debt letter, the additional taxes due plus the penalty, and filing the RITA claim. I personally found it to not be that difficult, albeit at first it seemed like a daunting task. After all the dust has settled, I ended up on the plus side. The RITA claim covered the taxes due, penalty, and the debt, with extra funds left over.

I originally received the W-2C in December, immediately completed my amended return, and sent it the next day. I took that amended return and compiled all of the other necessary paperwork, and immediately filed my RITA claim. My RITA claim sat in limbo for at least a month, as I have not received the debt letter until January. Payed that immediately upon receipt, and then I received my RITA claim about a week after that. The IRS took about 12 weeks to complete my amended return, and assessed a penalty (which was a lot lower then I thought it was going to be), which I immediately paid. And with that, the entire process was completed.
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