I think we need to call finance...

[~KittyKat~]

So DH is due to get his bonus, and his paperwork was submitted, and I just checked our bank account and there is a separate deposit besides his usual pay for $7150 .

He is getting 40k all together and they told him that they tax the whole thing and that this time he would receive $10k flat in a paper check, and the rest of his installments would be minus all of the taxes on the entire amount. Meaning that they will charge 28% tax on $40k, give him $10k now and then give him 3 more installments of $6267. This is what his command told him and how he was told his contract was written.

But if I take $40k and subtract the 28% ($11,200) and divide by 4 it comes out to $7200??? We need to call them tomorrow. I am confused. Someone messed up!!

[Southern-momma]

Yes, call finance before touching ANY of that money. Get it in writing that money is yours.

[Victoria]

Originally Posted by ~KittyKat~ So DH is due to get his bonus, and his paperwork was submitted, and I just checked our bank account and there is a separate deposit besides his usual pay for $7150 . He is getting 40k all together and they told him that they tax the whole thing and that this time he would receive $10k flat in a paper check, and the rest of his installments would be minus all of the taxes on the entire amount. Meaning that they will charge 28% tax on $40k, give him $10k now and then give him 3 more installments of $6267. This is what his command told him and how he was told his contract was written. But if I take $40k and subtract the 28% ($11,200) and divide by 4 it comes out to $7200??? We need to call them tomorrow. I am confused. Someone messed up!!

From our experience, they tax it when it's dispersed to you, whether it be upfront or installments. I've never really heard of a bonus check being sent out on a paper check, if his pay is set up to be sent via direct deposit. So it does sound right...

[~KittyKat~]

Well as it turns out, it was correct. The lady he talked to during in processing that handled the paperwork was completely wrong. He called DFAS and they pulled it up in the computer and said it is his first bonus payment and he is due to get another one on his enlistment anniversary in January. So DFAS has it set the way it is normally set for a bonus to be paid out. I am happy that it turned out to be this way. We can get 90% of our debt paid off with all of this money!!

[MS234755]

Originally Posted by ~KittyKat~ Well as it turns out, it was correct. The lady he talked to during in processing that handled the paperwork was completely wrong. He called DFAS and they pulled it up in the computer and said it is his first bonus payment and he is due to get another one on his enlistment anniversary in January. So DFAS has it set the way it is normally set for a bonus to be paid out. I am happy that it turned out to be this way. We can get 90% of our debt paid off with all of this money!!

I'm glad it was correct and will still work out for you both

[Comptuswife]

Hey Kitty Kat, what is the bonus for?

[felifreshh]

I wanna know how the heck he gets a 40k bonus!?

[Margaret]

Reenlistment

[felifreshh]

Originally Posted by Margaret Reenlistment

I now but dang!! lol holy crap that's a lot!

I'd put a DP on a house or pay off my car

[mossey2000]

Originally Posted by Felisha I wanna know how the heck he gets a 40k bonus!?

by not being a Seabee.

They do tax the installments as well.