Sell back leave?

Hence why I'm taking the free leave they are offering me and selling back what I've collected.

 

Always take your leave because then you have the option of starting your next job and collecting two paychecks unless it is GS and then you must be clear. However, absolutes tend to piss me off so I'm sure there are situations that fit other needs. It is your leave, your time, and your money. Thank you all for your service on behalf of a grateful Nation where now less than 26% of military aged males even qualify for service much less commit.

 

Not sure where the free leave came from, but you probably can't sell that. Sounds like you are making the best of what you got.

 

I took the 90 max terminal leave and used that time for rest, relaxation, retirement, and job hunting.

 

1) base pay only.
2) BAH and BAS is Not included
3) I think it'll be like a bonus about 35% though it's been a few years so I don't recall exactly.

Main reason to take leave is to get the BAH & BAS, and to double dip if you have another job lined up. If you're going involuntary then you just get the shaft one more time.

 

Not taxed as a bonus, leave is earned and therefore credited as owed compensation not an enlistment incentive or bonus. Bonus or incentives are typically taxed at the capital gains tax rate which is upwards of 38%. If you were able to sell the "free leave" then that would probably meet that criteria. However, it seems as though this is the USMC way of compensating the decision delay.

 

To clarify the "free leave" moniker. All it is is the standard PTDY, or in his service's terms, PTAD that is offered when one is separated. There are different amounts allowed for certain types of separation.

There is no selling the "free leave" as it is not earned leave.

 

Green Weenie had to get you one last time. I had the opportunity to take terminal so I can't really give you much information. Good luck on the outside brother.

 

It is income. It is taxed at the normal rate for income based on your married status for bi-monthly pay. If you are married, you are taxed 10% up to $1,138, then 15% on $1139-$3,523, then 25% on $3,524-$6,740, then 28% on $6,741-$10,083, and so on up to the 39.6% bracket for bi-monthly pay. If you are single, you pay a much higher rate. The 25% starts at $1,549.

So, what it will be taxed at will depend on how much your normal paycheck is and how much you will be getting in addition. Although you will be taxed at a higher rate for that individual pay check because of the increase in pay, it will not affect your overall tax liability for the year. You will still only owe whatever your normal amount is based on your annual taxable income when it comes time to file your taxes. Just think of it as paying a little ahead.

 

Best to go on separation leave you collect full pay and allowances on separation leave. Sell back. You only get base pay

 

I was picking weeds up until midnight up until i was 15 days from ets so they didn't really let me take leave either. I'm not sure how they calculated it as I got more than I expected for it but it seems like others on here have it figured out

 

For the Love of god DONT

 

Hey man sometimes you dont get the choice. The green weanie just slips itself in and decides for you

 

LOL that 25%tax is rough !!!

 

As with all things, it's an optimization problem.

If you have employment lined up, vacation + possible double dipping is nice. If you need the cash to bridge you to your next adventure, then working 'til the last day and cashing out is the answer. Lots of in-betweens depending on your status, however.