Enlistment bonuses

[justinlynn21]

i just signed an enlistment bonus for Electronics Maintnance. Any tips on how to deal with/save it? also, how large are the taxes on the bonuses and do they vary from state to state?:iwo:

[lamanognr86]

I think your profile needs to be updated. I'll answer your questions when it is.

[justinlynn21]

Profile is now updated

[lamanognr86]

How big is your bonus?

[justinlynn21]

$10,000, Lance Corporal. Sorry for not calling you by your title earlier.
i have the utmost respect for current marines, and I did not mean to disrespect you in that manner.

[lamanognr86]

After taxes, you will receive about 6-7 thousand. If I were you, I'd pay off any debt you have or put it in a savings account. You will only be able to get that bonus if you graduate from your MOS. School will last about 9-12 months. Good luck.

[MOS4429]

Nice!

In '78 I received an enlistment bonus for avionics/electronics of $1500.

Wow! Inflation. BTW, they sent me to legal instead of AV/E. Iamanognr's advice is good. Beware of sharks who know you have received a bonus. Get the money to the savings as soon as possible.

[chulaivet1966]

I'd pay off any debt you have or put it in a savings account. You will only be able to get that bonus if you graduate from your MOS. School will last about 9-12 months. Good luck.

Correct....leave absolutely no debts in the civilian world even if it eats up all of it.
That allows you to start fresh and adhere to fiscal responsibly.
Get through the MOS school respectably first.....good luck.

EDIT: it reminds me that I was offered 5K to re-enlist in '69....I chose not to for several reasons.

That's my take on it....carry on.

[Zulu 36]

i just signed an enlistment bonus for Electronics Maintnance. Any tips on how to deal with/save it? also, how large are the taxes on the bonuses and do they vary from state to state?:iwo:


Some states do not tax any military income, including enlistment bonuses. You would have to check Indiana law. State income taxes depend on where you list your home-of-record (HOR). If you have a relative living in Florida (no income tax at all) or Michigan (no taxes on military income), and a few other states, change to their address as your HOR after you get out of boot camp (ask permission of the relative first).

Since you don't get the bonus until you actually pass the school, you won't realize that bonus as taxable income until then, so you have some time to get the HOR change in. However, IRS will take their pound of flesh at that time regardless of your HOR.

Afterward, I agree with the advice to clear any debts and save the rest.

[sparkie]

"saving the rest" is good advice, however at your age it is a good time to develop a lifetime savings- investment plan and stick to it. Hard to do,,,but a damm good way to go.

[SlingerDun]

If you're going to place the entire amount in a slow growth low risk savings...look into a CD. Many will earn double that of a basic savings account

[justinlynn21]

Thank you all, Very good advice. Exactly what i was looking for!

[Sgt Jim]

When we older Marines enlisted we got a tooth brush to use on your teeth or the deck,that was the bone(is)LOL