Did you know your RITA will not be applied to your HMIP?
HMIP is considered a Relocation entitlement and is thus taxed accordingly. The general tax applied to RITA is 33%, the tax applied to HMIP is 32.95%.
The IRS considers the majority of relocation entitlements to be taxable. Per the “Revenue Reconciliation Act of 1993. These entitlements include Relocation Services(i.e. HMIP).
This memo may provide further information.
