MIL What's the tax for selling leave?

Discussion in 'On Topic' started by tan koi, Mar 6, 2010.

  1. tan koi

    tan koi Guest

    I always thought it was federal + state at the normal rate, but apparently it's something like 25-30% of your month's total base pay. Does anyone know the actual number, or does it fluctuate?
     
  2. Maffy29

    Maffy29 Active Member

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    I was once given a tip to not sell leave. You don't make near as much money as just using it normally.
     
  3. jmx2323

    jmx2323 OT Supporter

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    i wasnt aware you could just sell some leave?
     
  4. JSin

    JSin New Member

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    You can't just go work for the other job while on terminal leave? Or is this assuming that it is in another location and other mitigating circumstances.
     
  5. brackac

    brackac Fuck all of this. OT Supporter

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    No, no, no.

    When you reach the end of your enlistment, and have leave accrued, you get out early by using that leave, aka terminal leave. That way you still receive all your pay allowances, housing and sep rates etc etc while on leave. Selling leave back is the dumbest thing you can do. You lose money due to not receiving pay on your monthly allowances outside of base pay, and it's taxed at a higher rate than your income.

    Which would you rather have?

    Sell leave = (base pay/30)*days sold back = $
    Take terminal leave = (base pay + BAH + sep rates + additional pays like jump or language/30) * days sold back = $$$$$$

    Example.

    My enlistment was up 29 Jan 2001, and I had 34 days accrued leave. Intead of selling the leave back to the army, I used the leave just as you do normally. So, my final out date from the Army was back dated to 27 Dec 2000. Now, I had already accepted a job offer in the civilian job sector, which I started Jan 2nd, which resulted in me receiving a paycheck from the military and the civilian sector for all of Jan. When 29 Jan 2001 rolled around, my paperwork was filed by the Army, and my DD214 was mailed to me. You don't have to report back, you just final out early.
     
    Last edited: Mar 6, 2010
  6. brackac

    brackac Fuck all of this. OT Supporter

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    Yes, you can. Terminal leave is exactly what is sounds like.
     
  7. Jyokker

    Jyokker The trouser snake is very aggressive. It will corn

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    Selling leave should be used only if you cannot take terminal leave.
     
  8. Blackfox

    Blackfox Active Member

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    Or you need to get out earlier then where that leave would extend you to.
     
  9. tan koi

    tan koi Guest

    Thanks for the answers.

    Trust me, I wish I could be taking this leave. Unfortunately, my command fucked me by holding my involuntary separation memorandum that I needed to submit with my DA31. They held it for a month when I needed to submit it to transition to cut my orders.

    In short, I got fucked out of taking 24 days of leave and now I have to sell it. It sucks.
     
  10. kstack34

    kstack34 Its the sound of freedom

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    Ouch, and yea its taxed at around 30%, same tax as enlistment bonuses.
     
  11. Jyokker

    Jyokker The trouser snake is very aggressive. It will corn

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    Open an IG complaint on your way out.
     
  12. SeaMack99

    SeaMack99 OT Supporter

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    Don't feel bad. I was forced to sell back +30 days of leave. I miss out on so much extra monies:hsd:
     
  13. tan koi

    tan koi Guest

    So my S1 merged with our adjacent BNs S1 and lost my terminal leave packet again :rofl:

    fuck this shit i'll just sell 55 days of leave :rofl:
     
  14. Jyokker

    Jyokker The trouser snake is very aggressive. It will corn

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    You can only sell 60 days total.
     
  15. Jyokker

    Jyokker The trouser snake is very aggressive. It will corn

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    Why don't you extend for a few months then hit terminal leave?
     
  16. tan koi

    tan koi Guest

    This unit is deploying and I really, really don't want to be stuck on the rear detachment for another 3 months doing minuscule details. All I want is to leave as soon as possible.
     
  17. brackac

    brackac Fuck all of this. OT Supporter

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    Why are they kicking you out?
     
  18. MassiveGas

    MassiveGas OT Supporter

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    shit I wanna extend so I can deploy
     
  19. tan koi

    tan koi Guest

    They are replacing stop-loss with an early out policy that puts you out if you're within a 6 month window of your unit's deployment. In short, I got a memorandum that pushes my ETS 90 days earlier than the original date because of that policy.

    Staying in requires a DIEP extension that pushes your ETS 90 days past your unit's return from deployment.
     
  20. MassiveGas

    MassiveGas OT Supporter

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    so you don't want $500 extra every month for each month you extended past your ETS? :greddy:
     
  21. tan koi

    tan koi Guest

    Not worth it. This shit bores me. I don't want to spend another year downrange not doing anything for a mission.
     

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