Good morning. I’m wondering if someone in this sub can chime in. I sold about 59 days of leave prior to transitioning out. I did the math and calculated my expected amount was (after 22% tax). About 5 days from my end of service date I was paid about 80% of my sold leave. Does DFAS withhold the remaining amount? If so, how long does it take to release?
Posted by snipersebb27
1 Comment
Leave and bonuses are taxed at a higher rate initially bc payroll doesn’t want you to end up owing more taxes than anticipated at the end of the year. Ultimately what matters is your taxable income at the end of the year. For example, let’s say you got out in January, sold your leave which was taxed at 22% and then you didn’t work the entire rest of the year… when you do your taxes at the end of the year, let’s say your income totaled $16,000 and you have no dependents. The federal gov is going to tax you at 12% which will result in a refund.