Enlistment Bonus..?

Question

Mk..Lets say you signed for 5 years and were getting "$12,000" as an enlistment bonus..

-How much of this is taxed?
-How will this be payed to me

(Active Duty Army BTW)(US)

Answer 1

you will probably get $10,000 or a little less. You sign papers its importaint to read what your signing dont let them rush you through it recruiters are sneaky. They might say your getting that then you read it and it says after 3 years you get paid half of it or something. Your rec. is a liar they usually all are. What will happen is you go to basic for 9 weeks and then got to AIT witch is school for how ever long your schooling is for witch is like basic but you have a little more freedom you wont get your bonus untill you have finished both basic and ait. then you will get half off it witch in your case might be $5000 or something and they will take there time giving it to you. The army is always hurry up and wait. I would suggest you sign up for less time like maybe 2 years to see if this is for you or not. um active duty is like AIT every day. and as soon as you finish Ait you will be deployed so get ready i know it seems like a game now but as soon as you finish school as soon as they can your gone.

Answer 2

The answer depends on the exact type of bouns and what the contract reads. My daughter is getting a $20,000 bonus (max available when she enlisted). She gets half of it upon award of the specified MOS, which means at the end of her AIT training (in her case, that is two years from enlistment). The other half will be paid out in three annual installments on her enlistment anniversary date (five year enlistment). I believe the tax rate on it for withholding is the 25% set by IRS standards for lump sum withholding, but the actual tax rate will be whatever she is taxed on for overall income that year. This means she should get about $7500 in the first installment, but have a fairly large tax refund at the end of the year. I have heard rumors of them double taxing the bouns, with one time the 25% then the rest at whatever the monthly rate is, but I am not sure if this was from people who do not understand the taxing or what exactly had gone on.

I woudl always advise you to not count on any money until it is actually deposited in your bank account. You will get in less trouble that way.

Answer 3

My hubby received $12,000 as his bonus as well. We were taxed 40% and did not receive a dime of it until 3 months after we arrived at our first duty station and then only the first installment. They paid out the entire amount over a 1 year period.

Welcome to the Army! Now you know why I am an X-Army wife (not an x-wife, just out of the Army! Just one little reason)

By the way, check your paperwork - you didn't just sign on for 5 years - God bless!

Answer 4

All of it is taxable income and bonuses are taxed at a rate of something like 36% You will probably receive half of it up front and the other half will be payable over the remainder of the contract in equal payments on the anniversary date of your enlistment.

The only way to avoid the income taxes is to claim exempt on your W-4. If you have no other income you will probably be okay when it comes time to file your income taxes. If you claim exempt and forget to change it back after the payout of your bonus you won't have taxes, other than payroll taxes, taken out of your regular paycheck and you may find yourself owing a bunch of taxes when you file.

Answer 5

if enlistment bonus is paid the same as reenlistment bonus, half up front the rest divided equally on the aniversary date.

Answer 6

you will get taxed out the butt on it. you will receive it after you complete basic training and AIT. i would say after taxes you get anywhere from 8 to 10 thousand

Answer 7

It's a 33% tax rate.