Are Enlistment Bonuses Lump Sum?
Enlistment bonuses totaling less than $10,000 are paid in one lump sum upon successful completion of initial entry training. If a prior service member qualifies for re-enlistment with a certain set of skills the military needs, he/she could qualify for a bonus if they join for a new enlistment contract.
Do military bonuses count as income?
Here's the key to the whole thing: bonuses are taxed like regular income. There are taxes withheld on bonuses like there are taxes withheld on regular pay.
Military Bonuses and Taxes
Do you get your enlistment bonus right away?
You won't receive your Army enlistment bonus immediately. The Army needs to make sure you're committed to your role in serving the country and that you're not just in it for the money. Once you complete basic training and career-specific training, you'll receive your first payment of $10,000.
Does $50,000 Sound Good? Check Out the New Army Enlistment Bonus
How much is a 20000 bonus taxed army?
You would receive the remaining $20,000 in 5 annual installments of $4,000 each on the anniversary of your reenlistment. Don't forget about taxes! You will also have taxes automatically withheld from your bonus, generally at the 25% or 28% rate.
Enlistment and Reenlistment Bonus Guide - The Military Wallet
How much of my enlistment bonus is taxed?
Military bonuses are subject to taxation at the time of payment. Past rules (mentioned earlier in this article) issued by the Internal Revenue Service required the Defense Accounting And Finance Service (DFAS) to withhold 25% of that bonus (later reduced to 22%) on payment.
Taxes on Military Bonuses - Veteran.com