How do I go about paying back a reenlistment bonus?

SPC Private RallyPoint Member — Wed, 29 Jan 2020 05:53:35 -0500

I reenlisted for another 4 years back in 2017. I got 8k as a reenlistment bonus. My ETS is in October of 2021. However, i had gotten the opportunity to voluntary separate. I know I will have to pay this back due to my inability to complete the contract . How does this process work? Do they take it out as a lump sum or are they payments? I would like to exllore my options further .Thanks in Advance

Response by MSG Private RallyPoint Member made Jan 29 at 2020 9:51 AM

MSG Private RallyPoint Member — Wed, 29 Jan 2020 09:51:41 -0500

If memory serves, once you submit for ETS and it's approved, they will probably start taking it out of your pay check all the way to your ETS. If there is any debt left over, you may find your civilian pay garnished. However, I suggest you speak with your S1 for more clarification. Either that, or call DFAS and see what they say.

Response by SFC Private RallyPoint Member made Jan 29 at 2020 10:55 AM

SFC Private RallyPoint Member — Wed, 29 Jan 2020 10:55:32 -0500

Your bonus was calculated from your additional obligated service. That's the nember of months from your old ETS to your new ETS. You'll pay back a prorated portion of the month's you didn't serve. The pre-tax rate will be held as a debt from your final pay. What's left after that will be a debt to the US Government and be taken from your future tax returns until it is satisfied. To reclaim the money you over paid in taxes you will have to file an amended tax retirn for the year you received your bonus

Response by SGM Bill Frazer made Jan 29 at 2020 12:42 PM

SGM Bill Frazer — Wed, 29 Jan 2020 12:42:37 -0500

The Army will turn over all unpaid debts to the IRS for collection. You can, normally work a deal with them to make monthly payments till its paid back

Response by SPC Richard Zacke made Feb 1 at 2020 12:22 PM

SPC Richard Zacke — Sat, 01 Feb 2020 12:22:14 -0500

SPC Private RallyPoint Member Back in 1981 I was forced out due to medical problems ( broken back ) I was only three months into my next 4 year commitment. They never asked for it and I did'nt bother asking about it. Back then my 4 year bonus was only $1800. I fought to stay in but they don't want ya when your damaged goods, Ive been 100% TDIU since 1994. Good lick.