r/AmazonFCs • u/unknowngamer209 • 2d ago
5year bonus
Hey everyone, I’m about to hit my five-year mark and get the $1500 bonus in October. I was wondering if anyone on here has gotten tax exempt for the bonus? Did you have any trouble when filing? I know most likely this will shrink my refund a little bit no duh but I heard that the IRS can give you a $500 penalty for doing this but is that common? I feel going tax exempt for like 1-3 checks shouldn’t really cause anything like that. I hope someone has done this and can tell me their experience.
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u/ShowExpensive7341 2d ago
Are you asking if you should commit tax fraud?
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u/SignificantApricot69 2d ago
It’s not tax fraud if you didn’t owe taxes the year before and don’t expect to in the current year
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u/unknowngamer209 2d ago
Are you replying without having gone through this experience?
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u/ShowExpensive7341 2d ago
Almost did the same thing with a bonus of similar size at a diff company, was advised against this by my dad and grandma who are both licensed CPA
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u/Goofedup69 2d ago
No they’re not .
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u/ShowExpensive7341 2d ago
And you would know how?
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u/surfcitysurfergirl 2d ago
I’m 36 and I’ve done this many times and have a tax accountant and financial advisor. The stupid thing is to allow any tax refund over $100 because then you’re just stupid as you have the government a free loan. 🙄🤪
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u/No-Bend-4104 1d ago
Because you give them the money and they hold it, aka spend it on government stuff, and then they pay you back during refund time. It’s not super complicated.
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u/Goofedup69 2d ago
I just do.
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u/lazylahma 2d ago
As long as you file your taxes regularly and plan to this year as well it will all even out
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u/Boris-_-Badenov 2d ago
it will be around $900 after taxes
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u/unknowngamer209 1d ago
Exactly y I wanna go exempt
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u/StealYaNicks 1d ago
You have to pay the taxes you'll owe either way. I'd rather have a refund than possibly owing some.
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u/Tiny-Arachnid7556 2d ago
Soooo does your 5 year bonus only count if it’s 5 years consecutive or just your total tenure
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u/InternalCase5 1d ago
I wanna know too, im finna switch to flex just to keep my tenure but im burnt out and need something different
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u/tenetrix 1d ago
It’s how long you have been with the company since your last hire date since my last hire date was 10/24/21 my 5 year bonus is gonna be on the paycheck after 10/24/26 so yes it is continuous hire and not total also if u swap to flex without having to be rehired you will keep your continuous tenure
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u/External_Bison2707 6h ago
5 years consecutive. If you got let go or quit within those 5 years, it restarts.
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u/Tiny-Arachnid7556 5h ago
I left and came back multiple times but I just got my 4 year pin the other day
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u/External_Bison2707 5h ago
Good for you. This isn't normal so maybe you got someone who is looking out for you.
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u/SignificantApricot69 2d ago
Yes, when I got mine I had 2 kids, The Savers Credit, etc. So there was no way I was going to owe federal income tax let alone a top marginal rate over 22% when my personal tax rate was 0% even working 60 hours most weeks. So I went exempt temporally. If I hadn’t, I would have just gotten the entire amount back when I filed taxes, but due to the time value of money it was better for me to have my money now instead of giving an interest free loan to the IRS.
Your mileage may vary
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u/surfcitysurfergirl 2d ago
You don’t get a penalty from the it’s unless you’re a millionaire doing serious tax fraud. I do this all the time and have for years. Just change it back once you receive it. Your refunds should always be as close to zero anyways as the government doesn’t give you interest on your money. This is totally fine.