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Currently, retention bonuses are taxed at 25% (3% less than regular taxed income).
Military Career
Retention
Leadership
Money
Taxes
Posted 7 y ago
Responses: 18
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So if you get a renlistment bonus of $40,000 you have to give back $10,000. Now, tell me, just how much sense does that make. "Here, Soldier, I will give you $40,000 if you re-up. OK Thank you. Oh, Did I say $40,000? Oops, I meant to say $30,000. That's OK though, just "suck it up sucker."
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SPC (Join to see)
Oh, did I say $30,000? Well hold on we're only giving you $15,000. Then we'll give you the rest in installments. That's ok right?
(1)
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MAJ (Join to see)
Tax laws are very confusing, bonus are counted as regular income for tax payment purposes, they are withheld from your income at a "supplemental" rate of 25%. What that means is when you file your tax return you get the money back that is in excess of your actual tax percentage.
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If you want people to stay in, people like me and other lower enlisted who are still in their first contract trying to decide whether or not to make it a career or bail, then dont tax the bonus they GET for staying in. Its supposed to be an incentive.
(5)
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This has always been an issue. Let's change it. SGM, post another comment for all RP members to contact AUSA and have them speak for the Veterans and Active Duty Service Members on this topic to members of Congress.
Just an idea.
Just an idea.
(4)
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