OK so i want to factory reset my TB...BUT i'm afraid if i do then i will lose all my contacts.
is that the case in this situation? i dont want to goto the verizon store and ask them to transfer my contacts cause of a dumb mistake and pay a fee of 5 dollars.
You can easily go to People, hit Menu-->Import/Export-->Export to SD card to back them up just in case. You can choose kind of contacts to export (google (not necessary since they're on the cloud), Phone). Then just import them after you're done.
This is assuming you're not using Backup Assistant, which you can skip setup for after the factory reset. Also assuming it wipes out your contacts, I'm guessing you have "Phone" contacts that are stored on the phone - though I might be wrong and they could be on the SD.
Also if you have them synced with any other service such as exchange or facebook they will come back after you setup those services. The only ones that won't come back are ones you saved directly onto the phone.
In Phonebook, click the menu button. Should find settings to move your contacts. On my phone some contacts where on phone, others were in my google account. I moved them all to my gmail account. So not only can I get them back from a restore, but on a computer anytime.