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Monday, January 10, 2011

Quebec - 1000$ bonus from the company. 1000$ cash or 500$cash/500$gift card?

I know the majority are in Ontario but I'm unsure if bonus taxes work the same in Quebec.

I have the choice of having 1000$ cash or 50/50 split of 500$ gift card (for a choice of clothing store like AE, Hollister, Zara) and 500$ onto my paycheck.


Even if I take 1000$ to my paycheck and I get taxed almost 60%, don't I still get that amount back by the end of the year when the govt sends out the income tax cheques?


Or should I start an RRSP and dump it there?


if it matters, I'm 23, a part time student, working part time, earning less than $21k. 


I thought this was an interesting question as both are cash linked and the idea is to reduce the amount of taxes applicable from this bonus.  However according to Revenu Quebec gift cards are not considered a taxable benefit (up to a value of $500, see page 39).

http://www.revenu.gouv.qc.ca/documen...2010-10%29.pdf

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