My understanding was they cut you a check for the full amount before your class date

Full amount of bonus is given right away. If you quit at 1 yr you owe half back. Quit before a year you owe it all back. You might be able to settle for a prorated amount in court.

I will add a little information to this thread since it keeps coming up.

The bonus money (22,100 - 50,000 depending on the hours you have) has to be paid out before you start class at C5. It is not in the current Pilot Contract so this money is paid to you before you are an employee. No money is withheld for taxes either, so you get the full check of 22,100 / 50,000 delivered to your mailing address right before the first day of school.

If that’s a pun about Maryland it was awful...

Put it in a high yield savings account... laughable but you can make about 2,300 bucks on a 50k DEC check over two years with no risk. That’s what I’m doing... dream job might call me before the warden lets me out

Is that after you pay 20k in taxes on it?

The last time it made sense to put money in a savings account was the mid 80s when interest rates were 8%+. Most "high yield" savings accounts are in the 0.25-0.5% range at the moment. At that rate you might as well stuff it in your mattress.

The bottom line is the money should be put somewhere liquid yet remain untouched for the appropriate duration. Half the money isn't yours until the end of the first year (the clock starts after you complete IOE, not DOH) and the remainder is yours after two years. Until then, you're on the hook for the taxes and repaying the appropriate amount and chasing down the tax man for a refund on the amount returned should you decide to leave early.

Alternatively, you could have a business with accrued expenses and write those off against the bonus income (one of the perks of getting this bonus prior to becoming an employee as a 1099 vs a W2) to reduce your tax liability but most pilots don't have that option.

If your savings account is yielding that low, then you're doing savings accounts wrong.

Wrong... high yield savings accounts are 2.15-2.55%. Google it and you will see.

Wrong! Sorry, but in the eyes of the IRS the “bonus” is a loan until at least your one year mark and the clock starts ticking at your hire date. Subsequent to the one year mark, if it accrues at one month intervals, then each month becomes taxable as income. Whether you pay estimated taxes on it quarterly after the one year mark is something a tax accountant should answer for you.