Combat zone reenlistment/tax exempt bonus question

SFC Private RallyPoint Member — Mon, 18 May 2015 09:31:37 -0400

This is related to my earlier thread on my reenlistment bonus, but I don't think anybody has noticed my follow-up question buried in it.

You folks who have received tax exempt reenlistment bonuses, for reenlisting in a combat zone - were the payments you received a tax-free lump sum, or did they cut out tax, then refund it later, like they did with our deployed paychecks (as I understand the way we got paid)?

For example, if you had a $10,000 lump sum bonus, did you get a check for $7,500 with $2,500 deducted for income tax, and then a second check paying you back the $2,500, or did you get 1 check for $10,000?

Now that I finally got paid (well, LES pending...) my bonus from my 2013 reenlistment, I am trying to figure out whether I need to send in a pay inquiry on the deduction of income taxes from it.

Response by 1SG Private RallyPoint Member made May 18 at 2015 9:35 AM

1SG Private RallyPoint Member — Mon, 18 May 2015 09:35:44 -0400

If you were deployed it should be tax free!

Response by SFC Private RallyPoint Member made May 18 at 2015 10:17 AM

SFC Private RallyPoint Member — Mon, 18 May 2015 10:17:25 -0400

I just got an email from the guy who handled my reenlsitment contract in Afghanistan. He said it is normal for them to cut the tax, then refund it in another check, like they did with our pay, so I should give that about 30 days before sending a pay inquiry.

SFC Combs

Response by SFC Private RallyPoint Member made Jul 13 at 2015 9:36 PM

SFC Private RallyPoint Member — Mon, 13 Jul 2015 21:36:40 -0400

The way we do it here is when someone reenlists in a tax free zone, and they have taxes taken, there is a form they submit to finance to have their taxes refunded.

Response by 1LT Private RallyPoint Member made Jul 13 at 2015 9:43 PM

1LT Private RallyPoint Member — Mon, 13 Jul 2015 21:43:25 -0400

Its pretty common with reservists. Are you serviced by a UA? Or an RPAC? You need a copy of the enlistment contract, your DD 214 and the LES showing the payment. Have your admin (RPAC or UA) complete USAR form 23-R and attach all that supporting documentation then have them send up to DFAS or Ft McCoy i cant rememeber. One of those two though. They will know where to send.

Response by SFC Private RallyPoint Member made Dec 5 at 2015 7:09 AM

SFC Private RallyPoint Member — Sat, 05 Dec 2015 07:09:29 -0500

When I did my first re-enlistment, I was eligible for a bonus of 4,500, and I received all 3,300 (after taxes) together as one lump sum.

Now that I am doing my second re-enlistment, I am eligible for a bonus of 11,100 (tier 5, 60 months, 35F Airborne Position), and just received approximately 4100. I am not sure why, as 8,250 should have been the approximate bonus after a 25% tax.

This is the first I have heard of the "you will receive half your bonus now and the other half annually". Can anyone provide me the regulation to verify that statement, as I didn't receive my bonus in the past like this, or provide me any further information regarding my situation? Thanks!