Author Topic: Tax Return Amazon Gift Card  (Read 7564 times)

livetogive

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Tax Return Amazon Gift Card
« on: January 29, 2014, 10:42:25 PM »
I try very hard not to give the government an interest free loan, but this year due to a job change and some other stuff I'm getting  a refund in excess of $2k.  One option is to get it as an amazon gift card for a 10% bonus.

We buy a lot of our stuff (non perishable groceries, pet stuff, wedding ring? etc) from amazon so part of me is saying "HELLZ YEAH! THROW $1K towards it and make $100!" and the sensible part of me is saying "whoa, no way, use that money to pay down your recently refinanced fiancÚ's student loan debt at 4%."

Assuming we don't spend extra money (we won't) just because we have an amazon credit, and also assuming we spend $1,000 or more a year at amazon, should we go for it or pay down the debt?  Theoretically we should go amazon and make free money, but i'm super skeptical about turning cash into gift cards, especially ones that large.

thanks as always

Honest Abe

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Re: Tax Return Amazon Gift Card
« Reply #1 on: January 30, 2014, 03:25:16 AM »
I agree with Knaak.. Just have to trust yourself to turn the free money into an opportunity for yourself and not into a reason to spend more.

I believe you can take a partial amount of your refund as a gift card and the rest as cash if I remember correctly.. You could put $500 towards student loans and get $50 free at Amazon.

theSchmett

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Re: Tax Return Amazon Gift Card
« Reply #2 on: January 30, 2014, 03:52:30 AM »
Where do I get this deal?

chasesfish

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Re: Tax Return Amazon Gift Card
« Reply #3 on: January 30, 2014, 05:09:30 AM »
That's a pretty damn good deal.  I'd be interested in it, but I end up writing a check to the IRS each year.

It reminds me of those Coinstar machines.  They finally became more tolerable when I can convert change for an amazon gift card $1 for $1.

Jmoody10

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Re: Tax Return Amazon Gift Card
« Reply #4 on: January 30, 2014, 05:44:06 AM »
I think he is getting it from TurboTax.

brandino29

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Re: Tax Return Amazon Gift Card
« Reply #5 on: January 30, 2014, 07:02:07 AM »
Take the gift card and then on the same day, make an additional payment toward the student loans at the same value as the extra 10%. 

livetogive

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Re: Tax Return Amazon Gift Card
« Reply #6 on: January 30, 2014, 08:53:45 AM »
Where do I get this deal?

Buy turbotax from Amazon as a prime member I think.  Then at the end it gives you the option to convert your return.

foobar

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Re: Tax Return Amazon Gift Card
« Reply #7 on: January 30, 2014, 09:20:27 AM »
It is a turbo tax thing.  See https://turbotax.intuit.com/personal-taxes/


Where do I get this deal?

Buy turbotax from Amazon as a prime member I think.  Then at the end it gives you the option to convert your return.

daverobev

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Re: Tax Return Amazon Gift Card
« Reply #8 on: January 30, 2014, 11:13:40 AM »
10% > 4%

Assuming you spend the $1.1k naturally over the year, and would pay off $1k + interest over the year (it's not quite that simple but whatever).

4% is NOT a bad interest rate.

kolorado

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Re: Tax Return Amazon Gift Card
« Reply #9 on: January 30, 2014, 11:22:05 AM »
I thought it was a bit sketchy last year when we decided to do that(a portion of our return) but it worked out really well for us all year. I estimated about $200 above what we actually spent in 2013 so we still have some money on our Amazon account. What's really nice about getting the bonus is that it isn't taxable as far as I can tell, unlike putting the return in a bank or investment account. We'll probably do it again this year but only half so much. We've been getting so many Amazon gift cards from Swagbucks that we can't keep up with spending them. :)

mm31

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Re: Tax Return Amazon Gift Card
« Reply #10 on: January 30, 2014, 12:51:17 PM »
I was offered the same deal, but chose the money only.  I thought having pure cash would give me more freedom, and I thought having a gift card from amazon would tempt me to buy more stuff from them. There's not really a bad choice here in my opinion, just do what works best for you.

chucklesmcgee

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Re: Tax Return Amazon Gift Card
« Reply #11 on: January 30, 2014, 02:17:20 PM »
Deliberately overpay your quarterly taxes right now.
Opt for TurboTax Amazon Giftcard
Receive $9000 refund+ $900 bonus.


LauraG

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Re: Tax Return Amazon Gift Card
« Reply #12 on: January 30, 2014, 07:24:47 PM »
Deliberately overpay your quarterly taxes right now.
Opt for TurboTax Amazon Giftcard
Receive $9000 refund+ $900 bonus.

I'm pretty sure there's a $2,000 limit for the share of each return that can be applied to the Amazon gift card for a bonus. If you do five returns, it's a $10,000 total limit, but that wouldn't apply to many people.

"Amazon.com Gift Card offer is for federal refunds only. Limits apply ($2000 per e-card, maximum $10,000 per customer). Offer available only for TurboTax Online or CD/download versions sold and shipped, or downloaded directly from Intuit or Amazon." https://shop.turbotax.intuit.com/lp/yoy/dt_guarantees.jsp

It's still a great deal, and one I'm doing.