Defense Finance and Accounting Service > CivilianEmployees > Civilian Permanent Change of Station (PCS) > Civilian PCS Entitlement Guide (2024)

Relocation Income Tax Allowance (RITA)

The RITA reimburses an eligible transferred employee substantially all of the additional Federal, State, and local income taxes incurred as a resultofreceiving taxable travel income. Travel W-2 wages/income and withholdings are reported to the IRS. Travel W-2s must be included in your taxable income on your IRS Form 1040 to be eligible for RITA. RITA applies to taxable reimbursem*nts received in the previous year.

Defense Finance and Accounting Service > CivilianEmployees > Civilian Permanent Change of Station (PCS) > Civilian PCS Entitlement Guide (1)
Quick Tips

Things 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 DFAS and collection of the entire amount of WTA paid on your behalf.
  3. The amount of income reported on the Certification Form has to match the income tax documentation submitted with the RITA claim.
  4. A state must be claimed on the Certification Form with state taxes included for state tax consideration.
  5. A RITA cannot be filed if you were only reimbursed RITA in the previous year.
  6. 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.
Defense Finance and Accounting Service > CivilianEmployees > Civilian Permanent Change of Station (PCS) > Civilian PCS Entitlement Guide (2)
Important Information

RITA Voucher Submission:

  1. DD Form 1351-2 (Travel Voucher/Sub Voucher)
    1. You must claim RITA in block 18
    2. 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 SF1199A
  4. All W-2s (travel and payroll), including spouse’s if filing jointly, for the year you are claiming RITA.
  5. RITA CertifiedStatement of Income and Tax Filing Status
  6. Completed Federal Income tax return (Form 1040) including pages pertaining to wages, tips and other compensation and additional income and moving expense deductions.
  7. Completed State and Local income tax returns if your travel pay was taxed by a state.
NEW - **Beginning on or about February 25, 2021 DFAS will be accepting your RITA claim electronically via the SmartVoucher tool.

Log in to SmartVoucher with your CAC or myPay userid and password. Select "Create New Voucher", then select "PCS" and "DoD Civilian" and you will be on your way to create and submit your RITA claim and supporting documents electronically.

For a Guide to filing your voucher, click here!

Defense Finance and Accounting Service > CivilianEmployees > Civilian Permanent Change of Station (PCS) > Civilian PCS Entitlement Guide (3)
eTutorials

Needhelp filling out your form? Check out our YouTube Video eTutorials for more help.

How to complete DD 1351-2 for Relocation Income Tax Allowance


Block 1: Payment: Electronic Funds Transfer (EFT) is mandatory. Submit an SF 1199 or DD 2762 with updated banking account information.
Split Disbursem*nt: If you would like funds applied directly to your Government Travel Card, place an “x” in the block and indicate the dollar amount to be applied. If your reimbursem*nt is less than the amount requested, then the whole reimbursem*nt will be applied to the Government Travel Card.
Block 2: Name: Last name, first name, and middle initial of Employee.
Block 3: Grade of the Employee.
Block 4: Social Security Number of Employee – full 9 digits.
Block 5: Indicate “PCS” and “Member/Employee.”
Blocks 6a-6d: Valid mailing address.
Block 6e: Valid and legible e-mail addresses.
Block 7: Daytime telephone number.
Block 8: Order/Authorization number which is listed on the original orders (See DD Form1614 Block 25).
Block 9: List any and all previous payments paid from any finance office pertaining to the travel period being claimed. List “0.00” if you have not received any payments.
Block 10: This block may be used to make a note to explain something to the travel office, if applicable (e.g. Supplemental for...)
Block 11: Employee’s new duty station address where employee is being assigned (See DD Form1614 Block 8).
Blocks 12-17: Not required to be completed for RITA
Block 18 a-d: 20XX RITA (Year claimed must match the year on your W-2’s)
Block 19: Not applicable.
Block 20a&b: Signature of traveler and date signed. Do not forget the date in Block 20B, even if it is in your digital signature. Signature date must be the day of or after final date claimed.
Block 20c-f: Reviewer’s signature and date signed. All parts (20c, 20d, 20e, & 20f) must be completed or voucher will be returned. Signature date must be the same day or after the traveler.
Block 21: Would be required for after the fact approval.
Block 22: Not applicable.
Blocks 23 – 28: Not applicable

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Defense Finance and Accounting Service  > CivilianEmployees > Civilian Permanent Change of Station (PCS) > Civilian PCS Entitlement Guide (2024)

FAQs

What is a permanent change of station for federal employees? ›

A PCS is the transfer of an employee from one official work site to another or the assignment of a new employee to their first assignment site on a permanent basis. The majority of Government relocations are PCS.

What is the PCS miscellaneous expense allowance? ›

Definition of Miscellaneous Expense Allowance

MEA is payable when a PCS is authorized/approved, the employee moves out of the old residence and establishes a new residence, and signs an appropriate transportation agreement.

What is a permanent change of station in the military? ›

In the United States Armed Forces, a permanent change of station (PCS) is the assignment, detail, or transfer of a member or unit to a different duty station under competent orders which neither specify the duty as temporary, nor provide for further assignment to a new station, nor direct return to the old station.

What is defense finance and accounting service? ›

The Defense Finance and Accounting Service (DFAS) oversees payments to Department of Defense servicemembers, employees, vendors and contractors. The Defense Finance and Accounting Services also provides Department of Defense decision makers with business intelligence, finance and accounting information.

What is it called when you change duty stations? ›

Summary. There are numerous steps in the Permanent Change of Station (PCS) process. Through various agencies the Army provides guidance and counseling to assist Soldiers and their families in making the best choices.

What is a temporary change of station for a civilian? ›

Temporary Change of Station (TCS) Orders:

Your TCS orders will name your TCS location, duration and proceed date. Travel days to the TCS location will be reimbursed. Most TCS orders authorize government transportation, quarters and meals, at no cost to the traveler.

How much will I get for my PCs? ›

Starting in January of 2021, the military decided to increase the reimbursem*nt amount for moving expenses from 95 to 100 percent. This means that the government will pay 100 percent of your expenses in the event of a PCS.

Which of the following may not be covered for a permanent change of station? ›

Final answer: During a permanent change of station (PCS), security deposits, salary, and temporary lodging may not be covered.

How long before PCs do you get orders? ›

The goal for PCS orders issuance is 120 days or more prior to report date (14 days for IET Soldiers), and no later than 10 days after the receipt of required documents and information.

Why would I owe Defense Finance and Accounting Service? ›

Usually, DFAS debt occurs due to specific situations. According to the out-of-service debt DFAS webpage, overpayments are a potential reason for the debts. For instance, if your military or retirement pay from the DoD exceeds the amount you were or are eligible to receive, that creates a debt.

Who does DFAS fall under? ›

The United States Department of Defense is the parent agency of DFAS. Defense Finance and Accounting Service Garnishment Operations Center and the Defense Finance and Accounting Service Out-of-Service Debt Management Center are subordinate agencies of DFAS.

How do I access my DFAS after retirement? ›

The quickest and most convenient way to manage your retired pay is with myPay. myPay provides convenient access to your Retiree Account Statement, and lets you easily update your contact information, your federal tax withholding, your Arrears of Pay beneficiary, or download your tax documents.

Can you change your permanent duty station? ›

Unlike temporary duty assignments, permanent change of station orders are a longer-term assignment, generally two to four years. Broadly speaking, your orders will tell you where you'll be moving to – either CONUS or OCONUS. OCONUS: Outside the continental U.S. Includes Alaska, Hawaii and U.S. territories.

What is a change in duty station for federal employees? ›

A change in duty station occurs when an employee's >current< work site or station is moved to a new geographic location (a change in city/town, county, or State) and no other change occurs.

How hard is it to fire a permanent federal employee? ›

Firing a federal employee is significantly more difficult than firing an employee in the private sector. Whereas private sector employers can often fire their employees without any cause whatsoever, federal employers must abide by federal law and regulations.

Can a federal employee request a reassignment? ›

Internal Placement. Under certain conditions federal government employees may request reassignment from one organization or geographic location to another.

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