A Money Coach in Canada

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Your bonus counts as taxable income. It will be included on your T4 slip for the year and you ultimately will have to pay tax on it either immediately or at some time in the future.The best you can do is defer paying tax on your bonus by rolling it into an RRSP. That way you will not pay tax until you withdraw it (at which point you might be in a lower tax bracket). Or you can reduce the amount of tax you will have to pay by donating some of your bonus to a registered charity.


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About the Author

Imagine if Canadians were known for being all over their money. Engaged. Proactive. Getting out of debt. Savvy. Saving. Generous. Nancy wants to help. Nancy started her own journey with money over 15 years ago, and formed her company “Your Money by Design” in 2004 to help others along the same path. It’s not the usual financial advising/investment stuff. It’s about taking control of day-to-day finances –managing monthly cashflow effectively, spending appropriately, getting out of debt, saving. If you're ready to take control over your finances, pop by her business site, YourMoneybyDesign.com

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