How much taxes will be taken out of my $60,000 reenlistment bonus?
The bonus will be added to your income in box 1 of your W-2. The actual tax bite will depend upon your total income for the year. You will pay Social Security and Medicare taxes on it, plus Federal income taxes. Federal income taxes will be withheld at 25%, plus the SS and Med taxes. Those total $19,590 so you will receive $40,410. The Federal withholding of 25% may or may not be enough to cover the tax liability, so I’d strongly suggest that you set aside another 5% to 10% until tax time next hear to be on the safe side. You won’t pay any State tax since you are domiciled in FL and FL has no income tax.
