Taxes on Re-enlistement Bonuses

CPT Ahmed Faried — Sat, 13 Sep 2014 08:18:08 -0400

One of my headquarters NCOs re-enlisted before we deployed. He didn't receive his money , however, until after we we already in-country. The $40,000 bonus was taxed and now he has $30000 take home. Now what we are confused about and what I'm trying to clarify for him is this: Was he mistakenly taxed or was he taxed because he re-enlisted stateside?

Response by PO1 Private RallyPoint Member made Sep 13 at 2014 8:56 AM

PO1 Private RallyPoint Member — Sat, 13 Sep 2014 08:56:39 -0400

Re-enlisted stateside. I got SEAL buddies who take TAD/TDY orders to the hot zones AT THEIR OWN EXPENSE. So they can reenlist for tax-free $90+k. Good question, sir

Response by SGM Matthew Quick made Sep 13 at 2014 9:01 AM

SGM Matthew Quick — Sat, 13 Sep 2014 09:01:11 -0400

Since your NCO reenlisted in a non-tax free location (stateside), he would have been taxed federally at 25% (less than the normal 28% federal tax) and if he pays state taxes, at that rate as well.

Response by SFC Private RallyPoint Member made Dec 5 at 2015 7:10 AM

SFC Private RallyPoint Member — Sat, 05 Dec 2015 07:10:42 -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!

Response by SFC Private RallyPoint Member made Dec 5 at 2015 7:11 AM

SFC Private RallyPoint Member — Sat, 05 Dec 2015 07:11:07 -0500

It was because the re-enlistment was conducted state-side.