We are getting ready to reenlist in the Air Force, and I need to know how the reenlistment bonuses are taxed. What percentage is taken, and is it taken before they split it to give you the half up front, or is it taxed before they do anything with it?
2007-08-12 10:52:17 · 6 answers · asked by Emily A 2 in Politics & Government ➔ Military
I just re-enlisted into the Marine's and they took 30%.
2007-08-12 11:04:50 · answer #1 · answered by Matt 4 · 0⤊ 0⤋
It will be taken out before it is paid out to you. When my husband got his bonus two years ago, it was at about a 25% tax rate. Since the bonus will be included in your income for the year, be sure if you apply for financial aide, tuition assitance or any other financial program that looks at your returns over the next three years to include a letter explaining the reason for such an increase during the one year. When we applied for tuition assitance for my daughter, we sent a copy of both the return with the bonus and our return from the previous year to present a more accurate view of our finances as well as the letter explaining it.
2007-08-12 18:30:49 · answer #2 · answered by Annie 6 · 0⤊ 0⤋
It is taxed before they give you any of it and When we got ours it was about 15% taken out. I don't know about now though because that was 4 years ago
2007-08-12 17:55:50 · answer #3 · answered by Becky P 3 · 0⤊ 0⤋
Reenlist overseas in a combat zone it is tax-free.
2007-08-12 20:19:59 · answer #4 · answered by erehwon 4 · 0⤊ 0⤋
It all usually depends on which state you lived in before you enlisted. The one that should still be on your drivers license. Unless you are over seas then it is tax free.
2007-08-12 18:06:02 · answer #5 · answered by mcheney1988 1 · 0⤊ 0⤋
All military pay outside of the forces in the Middle East is taxed.
2007-08-12 21:11:12 · answer #6 · answered by wichitaor1 7 · 0⤊ 2⤋