|
Income tax reimbursements are made for the tax attributable to UN salary and
emoluments. This tax is considered to be the difference between (a) the actual
total tax payable for the year as shown in the copies of the tax return with
the UN income (as shown on his statement of taxable earnings) included
; and (b) the tax that would be payable if UN income were excluded
from total income. Both calculations use the actual total
deductions and the actual exemptions claimed by the staff
member on his tax returns to arrive at the taxable income.
Effective with the 2002 tax reimbursement, the deduction for exemptions and/or
the limitation of itemized deductions that may result from including UN
earnings in adjusted gross income is taken into consideration for the
calculation of reimbursement of regular income tax or alternative minimum tax (latest
tax circular). To illustrate, assume that a staff member and his spouse
working outside the UN filed as married filing jointly for 2006, had the
following federal taxable income and were not subject to Social Security tax:
-
Actual total tax payable on return
UN earnings
|
|
$73,000
|
Non-UN ordinary income
|
|
40,000
|
Less: Deductions
|
|
15,000-
|
Less: Exemptions ($3,500*2)
|
|
7,000-
|
Taxable income
|
|
$91,000
|
|
Federal Tax
|
|
$15,444
|
(A)
|
-
Tax payable without UN income
Non-UN ordinary income
|
|
40,000
|
Less: Deductions
|
|
15,000-
|
Less: Exemptions ($3,500*2)
|
|
7,000-
|
Taxable income
|
|
$18,000
|
|
Federal Tax
|
|
$1,901
|
(B)
|
UN federal income tax reimbursement
|
=
|
(A) - (B)
|
|
|
=
|
$15,444 - $1,901
|
|
|
=
|
$13,543
|
|
