Does anyone know how much taxes are withheld from an SRB?

TSgt Private RallyPoint Member — Fri, 13 Nov 2015 22:06:29 -0500

I live in Texas so I know there are no state taxes being taken out. I have one exemption I claim on my w4.
Has anyone received an SRB? How much did they withhold? I'm trying to plan if I need to set aside some of the funds for tax time this year.

Response by CSM Michael J. Uhlig made Nov 13 at 2015 10:35 PM

CSM Michael J. Uhlig — Fri, 13 Nov 2015 22:35:07 -0500

28% was withheld from my SRB. Things have changed over the last 25 years so I recommend asking your finance rep or the career counselor/retention NCO. I think you are safe with a 28% figure though.

Response by SSgt Alex Robinson made Nov 14 at 2015 1:45 AM

SSgt Alex Robinson — Sat, 14 Nov 2015 01:45:36 -0500

Ask your accounting and finance people

Response by SCPO Joshua I made Nov 14 at 2015 2:51 AM

SCPO Joshua I — Sat, 14 Nov 2015 02:51:20 -0500

28% up front as posted for federal taxes. Not likely you'd wind up paying more than that at the end of the year.

Response by MSgt John Carroll made Nov 14 at 2015 9:31 AM

MSgt John Carroll — Sat, 14 Nov 2015 09:31:08 -0500

Everyone is correct with 28%. That's what was held out of mine too. Try to reenlist overseas in a Tax Free zone. You picked an awesome time. I re-upped several years ago so I had a Christmas Bonus every year. Also, the USAF has a $200K total on ALL re-enlistments throughout your career.

Response by TSgt David L. made Nov 14 at 2015 11:26 AM

TSgt David L. — Sat, 14 Nov 2015 11:26:22 -0500

Yep TSgt Private RallyPoint Member, if there is a deployment in your future, wait until then. Some locations can't initiate, only process the paperwork, so you might need to start it at home station.
Either way you should be alright for taxes. They used to take the taxes out right away. I doubt that has changed.

Response by TSgt Gwen Walcott made Nov 14 at 2015 3:01 PM

TSgt Gwen Walcott — Sat, 14 Nov 2015 15:01:40 -0500

Too long ago since I had one, but the 28% figure sounds correct.
The IRS wants to make sure that you have the funds (withdrawn) for whatever tax bracket that the bonus has pushed you into. (No one pays 38%, almost everyone pays around 17%, so 28% is a hedge to make sure you can't claim indigent status)

Response by MSgt Michael Smith made Nov 16 at 2015 2:12 PM

MSgt Michael Smith — Mon, 16 Nov 2015 14:12:42 -0500

A LOT --like 30 percent or more. It is taxed like a bonus.

Response by TSgt Private RallyPoint Member made Nov 16 at 2015 5:50 PM

TSgt Private RallyPoint Member — Mon, 16 Nov 2015 17:50:20 -0500

Does anyone know if the 28% covers fica and social security taxes. I asked the person at finance today and he said he had no clue, he's been there a month and hasn't had an SRB come in the door yet.