So my husband's Army reenilstment bonus hit the bank this morning. It was a $25,000 bonus, we were figuring that 30 to 35% tax would be taken out just as it was the last time he got a bonus but it was way more...only about half of that bonus hit the bank. He had it set up to all come in one lump some so my question is if you have recived a bonus recently how much tax was taken out?
I transfered it all to savings and dont plan to touch it until he returns from DSS just incase it was a misake, it just doesn't seem correct.
let me know what you think.
2007-08-15 03:58:05 · 11 answers · asked by army wifey 2 in Politics & Government ➔ Military
thank you for all of your answers! I hope to hear from him tonight so we can talk about what the next step might be. I was just curious.
2007-08-15 04:13:57 · update #1
Usually with a military bonus you get half up front in a large lump sum, then you get the remainder once a year over the length of the enlistment.
For example, he re-enlisted for 4 years for a $25000 bonus. Half of the $25K or $12500 would be paid, taxed of course. Now, on the anniversary date over the next 4 years he will get the remainder of the $12500 or $3125 on that date over the next 4 years.
If he re-enlisted in a tax free zone, taxes will still be taken out, however in about a weeks time the taxes withdrawn will be re-reimbursed on a separate check.
If I recall correctly, the taxes are going to be 35-40%
2007-08-15 04:06:20 · answer #1 · answered by Colonel 6 · 3⤊ 0⤋
Actually I know what happened . . . The payroll program utilized to process the bonus calculated his tax rate as if $25,000.00 was his normal pay and not a bonus. For instance, if your husband is paid $1,000.00 per week, for a grand total of $52,000 annually , the computer reads the bonus as an average pay of $26,000.00 per week - thus upping his tax bracket. When in reality his annual pay is not $78,000.00. If you can wait, you'll get the money back on your taxes. It may be quicker than dealing with your payroll department. I used to work for a company that processed similar bonuses and I would always have to hand calculate the bonuses because you can't manipulate the computer system for "one time only" bonuses.
2007-08-15 04:08:09 · answer #2 · answered by CHARITY G 7 · 1⤊ 1⤋
When my ex-husband got his bonus it was taxed 28%. It shouldn't be much more than that. You are smart for waiting to make sure the correct amount was put in the bank. Check with the PSD (the military payroll department) to make sure. If he isn't around, you should still be able to go in there with your dependent id and inquire about it. Good luck!
2007-08-15 04:02:37 · answer #3 · answered by bonstermonster20 6 · 3⤊ 0⤋
In other businesses, the standard amount withheld from bonuses is 40%. I don't know if that is different with military bonuses. After you file your tax returns, you might get back a lot of it depending on what your tax situation is.
But seriously, if it were up to me, it would be tax exempt for what your family is sacraficing for our country. Maybe that's just the liberal in me...
2007-08-15 04:05:35 · answer #4 · answered by Anonymous · 2⤊ 0⤋
generally speaking they are taxed at 28%. SRBs are given half up front and the remainder in equal installments over the length of their enlistment term. Only SRBs of ten thousand or less are given in lump sums.
by my calculations, it would have been around $9000 or so.
2007-08-15 06:12:39 · answer #5 · answered by Mrsjvb 7 · 1⤊ 0⤋
Instead of asking a bunch of idiots on yahoo, Why don't you go talk to the commands disbursing or personal unit. (Called dispursing or personal office in the Navy not sure what the army's version is) i would not take advice from people on the internet when 25,000 dollars is invlolved.
2007-08-15 04:04:21 · answer #6 · answered by Jon 2 · 2⤊ 1⤋
I receive bonuses through my job and they are taxed approximately 40%. I am not sure if it would be the same coming directley from the government though
2007-08-15 04:04:29 · answer #7 · answered by Anonymous · 2⤊ 0⤋
it matters what your total taxable income is as what the tax rate is, it could be 28% TO 39.6% . LOOK AT LAST YEARS 1040 and look at the taxable income and add 25000 to it , then go to the IRS web sit(IRS.gov)and look at the tax rate schdules ,remember to also check out your states income taxes .
2007-08-15 04:19:36 · answer #8 · answered by Anonymous · 1⤊ 0⤋
Bonuses are taxed at 25% for federal taxes, plus social secuirty at 6.2%, medicare of 1.45% and there are also state taxes that are deducted.
2007-08-15 04:16:56 · answer #9 · answered by xg6 7 · 1⤊ 0⤋
Did you chekc out what mypay said and how much was taken out for taxes?
2007-08-15 04:24:10 · answer #10 · answered by Anonymous · 1⤊ 0⤋