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Thread: Bonus and Taxes

  1. MilitarySOS Jewel
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    #1

    Bonus and Taxes

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    In the time DH is been deployed he reenlisted, he did it that way so he could do it tax free. They told him the whole amount would be deposited but today I noticed it was a different amount and when I checked MyPay it showed taxes had been taken out. Is this normal? That probably sounds stupid but DH hasn't gotten a bonus while we've been married so I am kind of confused .
  2. "If you don't like my attitude, quit talking to me"
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    #2
    I think bonuses are not included in the tax free thing, its a bonus it isn't pay earned, confusing i know.

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  3. MilitarySOS Jewel
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    Quote Originally Posted by TrishAFSpouse View Post
    I think bonuses are not included in the tax free thing, its a bonus it isn't pay earned, confusing i know.
    See that is what I thought at first but everyone DH talked to about it said that it would be tax free, which if that isn't true kind of annoys me because the whole reason he didn't do it earlier so we could pay stuff off was because we thought it would be tax free.

    Though upon further looking I just realized they are still take regular taxes out and it's been almost 2 months so that's weird.
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    #4
    well, at least if it should've been tax free you will get it all back at tax time... but to my knowledge bonuses are not tax exempt like base pay would be, but i've been wrong before.

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    #5
    being on a deployment does not automatically make income tax free.
    if he is in one of the tax free areas boots on the ground and is still not getting tax free he needs to talk to his command asap!
    here is the IRS list of tax free areas:

    Q-1: What geographic areas are considered combat zones?

    A-1: Combat zones are designated by an Executive Order from the President as areas in which the U.S. Armed Forces are engaging or have engaged in combat. There are currently three such combat zones (including the airspace above each):

    Arabian Peninsula Areas, beginning Jan. 17, 1991 -- the Persian Gulf, Red Sea, Gulf of Oman, the part of the Arabian Sea north of 10 North latitude and west of 68 East longitude, the Gulf of Aden, and the countries of Bahrain, Iraq, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.




    Kosovo area, beginning Mar. 24, 1999 -- Federal Republic of Yugoslavia (Serbia and Montenegro), Albania, the Adriatic Sea and the Ionian Sea north of the 39th Parallel.




    Afghanistan, beginning Sept. 19, 2001.


    Public Law 104-117 designates three parts of the former Yugoslavia as a Qualified Hazardous Duty Area, to be treated as if it were a combat zone, beginning Nov. 21, 1995 -- Bosnia and Herzegovina, Croatia, and Macedonia.

    In addition, the Department of Defense has certified these locations for combat zone tax benefits due to their direct support of military operations, beginning on the listed dates:

    In support of Operation Enduring Freedom (Afghanistan combat zone):

    Pakistan, Tajikistan and Jordan - Sept. 19, 2001


    Incirlik Air Base, Turkey - Sept. 21, 2001 through Dec. 31, 2005


    Kyrgyzstan and Uzbekistan - Oct. 1, 2001


    Philippines (only troops with orders referencing Operation Enduring Freedom) - Jan. 9, 2002


    Yemen - Apr. 10, 2002


    Djibouti - July 1, 2002


    Israel - Jan. 1 through July 31, 2003


    Somalia - Jan. 1, 2004
  6. MilitarySOS Jewel
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    #6
    He's Afghanistan so for sure supposed to be tax free hopefully he'll be in contact in the next few days so I can let him know, he doesn't get a chance to check his MyPay very often so I'm sure he is unaware. I'll have him look into the bonus thing to, I mean if it's taxed then that's fine, we were just looking forward to putting a nice chunk in savings .
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    #7
    DH reenlisted once in Iraq and got his bonus tax-free. That was in '05, though, so the rules could've changed.
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    #8
    Damn, I wish DH could have gotten a reenlistment bonus this time, even if it was taxed


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    #9
    It should be tax free. Your DH needs to go talk to someone in finance, especially if he is still getting taxes taken out of his regular pay.
  10. MilitarySOS Jewel
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    #10
    Thanks guys!! I will let DH know to look into it next time I talk to him!

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