So I realize this is quite a bit after the fact but when I filed my taxes for this year I received pretty much the normal amount that I would’ve if I hadn’t gotten an enlistment bonus. I received the first part of my bonus which was 10k when I arrived at my duty station last May, and then 4 months later I hit my year mark so I received my second part which was in September 2020. I had a “live tax professional” from H&R Block file my taxes and told him I received an enlistment bonus. I don’t know exactly what else I was supposed to tell him because I provided all the documentation he asked for but I didn’t receive the taxed portion of my bonus in my tax return when I got it back which would’ve been around $4,000. I kinda chopped it up to, “oh well maybe you don’t get that back in your taxes then…” but now I’ve talked to a few people about it and they were like no you should definitely get that back. So I was thinking I guess I could call up H&R Block and tell them I had an issue with my taxes. I don’t really know I just know it would suck if I was supposed to get that money and never did. If anyone can tell me how they got the taxed portion of their bonus back with their tax return I’m sure it could help a lot. Just as far as what documents you needed or if you did your return yourself, maybe I missed something on MyPay idek but whatever advice you have just drop it in the comments. Thankyou!
Tax Returns & Enlistment Bonuses
- Thread starter anaaaaa
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resjudicata
New member
@anaaaaa Bonuses are just taxed as normal income. Meaning if you made $35,000 from your base pay alone one year, and got a $10,000 bonus that same year, then your tax liability goes up to $45,000. It's just one big pot of money.
With this in mind, your W-2 will show you exactly how much taxable money you made and how much money was withdrawn automatically for taxes. When you file your tax return, you would most likely get a higher refund on your money than you would have without the bonus (because more money than necessary was probably withheld to avoid any legal issues, it happens a lot, that's what a refund is for), but you would not be entitled to all of the money back.
With this in mind, your W-2 will show you exactly how much taxable money you made and how much money was withdrawn automatically for taxes. When you file your tax return, you would most likely get a higher refund on your money than you would have without the bonus (because more money than necessary was probably withheld to avoid any legal issues, it happens a lot, that's what a refund is for), but you would not be entitled to all of the money back.
@anaaaaa ngl kinda tired right now so I might be missing something, but - You'd have to look at your W-2, look at what the reported taxable income was, how much was withheld, and how much you got refunded. You can run the info yourself through a program like Turbotax, Credit Karma, or Tax Slayer for free just to see what your expected refund should have been.
Also some of that money would have gone to state taxes if you are required to pay those or didn't stop withholding if not required (it's easier to just... withhold them then file a return imo just to be on the safe side or if you ever get stationed in the state).
And then do you have any additional income, investments, interest payouts from bank accounts, giving people Lyfts or grubbing hubs? All these impact your liability, too.
ALSO Did you have TSP allotments set up to take a portion of your bonus pay? Because if you have a traditional TSP account, that money would have just gone straight into the account without being taxed. You can verify this on MyPay through the TSP Allotment section, also they show any TSP contributions on your W-2 as well.
Hard to give an exact answer without the numbers.
Also some of that money would have gone to state taxes if you are required to pay those or didn't stop withholding if not required (it's easier to just... withhold them then file a return imo just to be on the safe side or if you ever get stationed in the state).
And then do you have any additional income, investments, interest payouts from bank accounts, giving people Lyfts or grubbing hubs? All these impact your liability, too.
ALSO Did you have TSP allotments set up to take a portion of your bonus pay? Because if you have a traditional TSP account, that money would have just gone straight into the account without being taxed. You can verify this on MyPay through the TSP Allotment section, also they show any TSP contributions on your W-2 as well.
Hard to give an exact answer without the numbers.
@anaaaaa You won’t get the taxed portion back. As said, your bonus counts towards your taxable income. The amount of your federal withholding compared to your tax liability dictates how much you get back of that money. A lot of factors play into to that; tax bracket, dependents, etc.. it sounds like you have a very simple return, I’d bet H&R Block got it right.
chadwick90
New member
@chadwick90 That’s a post in its own fr. Just make it a post more people gonna see that.
@chadwick90 All depends on what your taxable income is now versus what you think it’ll be in the future. For most people, it makes more sense to put the $ in Roth.
chadwick90
New member
@anaaaaa https://www.irs.gov/pub/irs-pdf/p3.pdf
Enlistment/Re-enlistment bonuses are taxed like regular income and are typically added in with your regular wages and reported on the same W-2. You will also have taxes automatically withheld from your bonus, generally at the 25% or 28% rate. This is automatically done by the government, and not something you can change. If the withholding is too high for your tax bracket, then you will likely receive a larger than normal refund the following year.
Enlistment/Re-enlistment bonuses are taxed like regular income and are typically added in with your regular wages and reported on the same W-2. You will also have taxes automatically withheld from your bonus, generally at the 25% or 28% rate. This is automatically done by the government, and not something you can change. If the withholding is too high for your tax bracket, then you will likely receive a larger than normal refund the following year.