TRAINEE GUIDE - Recruit Training Command - The US Navy

TRAINEE GUIDE A-950-0001
OUTLINE SHEET 2-01-1 (continued)
3 Overseas Housing Allowance (OHO)
4 Variable Housing Allowance (VHA)
(2) Allowances are not taxable
c. Enlistment bonuses
(1) Paid upon completion of formal training
(a) Lump sum
(b) Periodic installments
(2) 27-33% income tax is withheld
4. Military Pay Deductions
a. Federal Income Tax
(1) The amount withheld from your pay for Federal Income Tax
depends on:
(a) Amount your earn
(b) Information you give employer on IRS
form W-4
(2) Estimate: 10-15%
b. State Income Tax
c. Federal Insurance Contribution Act (FICA) – Social Security
d. FICA – Medicare
e. Service Member’s Group Life Insurance (SGLI)
(1) 6.5 cents per month for $10,000 coverage for lesser than
max coverage amounts.
(2) $28.00 per month for $400,000 maximum coverage
(3) Enrollment is optional
f. Armed Forces Retirement Home (AFRH)
g. Montgomery GI Bill (MGIB)
(1) Costs $100 per month for 12 months.
(2) $600 contribution or “buy up”
(3) You are automatically enrolled, and must choose to
disenroll. This will be explained during that class.
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