Reimbursement Formula:
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Definition: This calculator estimates the tax-free reimbursement amount for military personnel relocation based on government constructed costs.
Purpose: It helps military members and finance officers determine the proper reimbursement amount for relocation expenses that is exempt from taxes.
The calculator uses the formula:
Where:
Explanation: The GCC (actual moving cost determined by government) is multiplied by 1.3 to account for additional expenses and provide tax-free reimbursement.
Details: Proper calculation ensures military members receive full tax-free benefits for relocation while maintaining compliance with regulations.
Tips: Enter the GCC amount provided by your relocation office. The value must be > 0.
Q1: What is GCC?
A: Government Constructed Cost is the official estimated cost of your move as determined by military relocation specialists.
Q2: Why is the multiplier 1.3?
A: The 30% addition accounts for incidental expenses and ensures the reimbursement is tax-free under current military regulations.
Q3: Is this reimbursement taxable?
A: No, this calculation provides the tax-free reimbursement amount as authorized for military moves.
Q4: What if my actual costs exceed this amount?
A: Amounts above this calculated value may be taxable - consult your finance office for specific guidance.
Q5: Does this apply to all military branches?
A: Yes, this calculation standard applies uniformly across all U.S. military service branches.