The Terminal Leave Sell Back Calculator is a valuable tool design to assist service members in determining the potential payout they could receive for their unused leave days upon leaving the military. By inputting their base pay, allowances, and the number of unused leave days, users can quickly calculate an estimate of their terminal leave payout.
Formula of Terminal Leave Sell Back Calculator
The calculation formula for the Terminal Leave Payout is as follows:
Terminal Leave Payout = (Base Pay + Allowances) × (Number of Unused Leave Days) / 30 days
Where:
- Base Pay: This refers to the service member’s regular pay rate.
- Allowances: Any additional pay or allowances received by the service member.
- Number of Unused Leave Days: Total accumulated days of unused leave.
- 30 days: The maximum number of leave days a service member can accrue in a year.
Table of General Terms
| Benefit | Impacted by Selling Back Leave? | Additional Information |
|---|---|---|
| Severance Pay | No | Severance pay is not affected by selling back leave. |
| Retirement Pay | No | Your monthly retirement pay is calculated based on your base pay at retirement, not on leave sold back. |
| VA Disability Benefits | No | VA disability benefits are not affected by selling back leave. |
| Health Insurance | No | You remain eligible for TRICARE health insurance after retirement regardless of selling back leave. |
| Life Insurance | No | Your SGLI coverage remains active as long as you keep paying premiums, regardless of selling back leave. |
| Federal Taxes | Yes | The payout from selling back leave is considered taxable income and subject to federal income tax withholding. |
| State Taxes | Varies | Some states may tax the payout from selling back leave, while others don’t. Check with your state’s tax authority for details. |
Example of Terminal Leave Sell Back Calculator
Let’s consider an example to illustrate how the Terminal Leave Sell Back Calculator works:
- Base Pay: $2,500
- Allowances: $300
- Number of Unused Leave Days: 45
Using the formula mentioned above:
Terminal Leave Payout = (2500 + 300) × (45) / 30 = 2800 × 45 / 30 = 4200
So, the estimated terminal leave payout would be $4,200.
Most Common FAQs
A: The terminal leave payout is calculate by multiplying the sum of base pay and allowances by the number of unused leave days, then dividing by 30 days.
A: Yes, service members have the option to sell back their unused leave days upon separation from the military.
A: Yes, terminal leave payouts are subject to taxation as regular income.
A: Yes, terminal leave days can be use to extend the service member’s active duty service time, which may impact retirement benefits.