The Army offers lump-sum re-enlistment bonuses for Soldiers who hold certain Military Occupation Specialties and/or special skills, who agree to re-enlist in the active duty Army. Whether or not a bonus is offered, and the exact amount of the monetary bonus depends on several factors, including MOS/Skill, rank, how much active duty time the Soldier has, and how long the Soldier is re-enlisting for. Re-Enlistment bonuses are subject to Federal income tax, except when the Soldier re-enlists in a designated combat zone. In that case, the entire amount of the re-enlistment bonus is tax-free. Whether or not a re-enlistment bonus is subject to state income tax, depends on the laws of the individual state, that the Soldier claims as his/her legal residence.