Posted on Aug 10, 2022
Should my re-enlistment bonus have been taxed since I was back on U.S. soil when I receive it?
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While I was overseas I re-enlisted and was authorized a bonus, lump sum and tax free.
Fast forward to being CONUS I have received the lump sum but it was taxed. So I go and speak to people in the chain and it was explained to me that if I had been overseas when it was paid out it would not be taxed but because I was back on U.S. soil that it is taxed and I receive it back after doing my taxes.
So, am I getting screwed by Uncle Sugar like so many before me or is it legit?
Fast forward to being CONUS I have received the lump sum but it was taxed. So I go and speak to people in the chain and it was explained to me that if I had been overseas when it was paid out it would not be taxed but because I was back on U.S. soil that it is taxed and I receive it back after doing my taxes.
So, am I getting screwed by Uncle Sugar like so many before me or is it legit?
Posted in these groups: 
Re-enlistment
Re-enlistment
Posted >1 y ago
Responses: 5
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To get real specific with it, your tax is based on the day you're entitled the bonus, that's the day your new enlistment starts. In the Regular Army you are discharged immediately and your new contract starts that day. That day, whatever your eligibility is for a bonus and tax liability is what you receive.
If I'm not mistaken, in the RC your new contract starts the day after your old one ends. That's the day your tax liability is assessed. If I'm wrong about that and you are discharged that day you signed your contract, then you can go to finance and ask for a form to be paid back the amount you were taxed by DFAS.
If I'm not mistaken, in the RC your new contract starts the day after your old one ends. That's the day your tax liability is assessed. If I'm wrong about that and you are discharged that day you signed your contract, then you can go to finance and ask for a form to be paid back the amount you were taxed by DFAS.
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SPC (Join to see)
You're correct SFC (Join to see), my new contract started the day after my original ETS.
Of course the tax liability was not explained with OCONUS vs. CONUS, and no mention of it on the bonus portion of the contract so the sizeable chunk out of the bonus was a surprise.
Of course the tax liability was not explained with OCONUS vs. CONUS, and no mention of it on the bonus portion of the contract so the sizeable chunk out of the bonus was a surprise.
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Money you receive in a CZTE is not taxed.
Money you receive outside of a CZTE is taxed.
Money you receive outside of a CZTE is taxed.
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If I Understand Properly,
You'll Be Taxed, Whether You're State Side Or Overseas.
The Only Difference Is: If Your Stateside, You'll Pay Full US Income Taxes.
If Overseas, You'll Only Be Responsible For A Certain Portion Of The US Income Taxes.
As A Non-Resident US Citizen.. The Amounts Are Based On Your Total Income...
Just As Though You Lived In The States All That Year & All Your Income Was Derived Here.
You'll Be Taxed, Whether You're State Side Or Overseas.
The Only Difference Is: If Your Stateside, You'll Pay Full US Income Taxes.
If Overseas, You'll Only Be Responsible For A Certain Portion Of The US Income Taxes.
As A Non-Resident US Citizen.. The Amounts Are Based On Your Total Income...
Just As Though You Lived In The States All That Year & All Your Income Was Derived Here.
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