Tax season has started. My friends were wondering if there was any
way to maximise their relief.
So… here goes
Once you check the boxes, all the reliefs that might apply will be shown.
I’ll cover the ones that mattered more to me + one bonus for
working mothers that’s off everyone’s radar.
Common ones
These are the popular ones that are highly publicised:
- CPF Cash Top up to MA/SA – up to $8000
- CPF Cash Top for spouse/parents up to SA/RA – up
to $8000
**it’s important if your parents are eligible MRSS top-up** - SRS Cash Top up – up to $15,300
Donations
This is less talked about as people are quite private or
humble about the charities they support.
You do get 2.5X tax relief for donations made to local
charities. I was sulky over this as I’m doing a child sponsorship
overseas that doesn’t qualify.
So on top of that, I do donate locally when the opportunity
arises.
Another possibility is to talk with your family. If there
are causes that they are supporting annually, ask if you could donate instead.
Fun Fact: You’ve might have heard of stories where people chose to donate instead of paying taxes.
So, is it possible to equally offset the taxes I must
pay through donations?
For folks like us, it’s only possible if your income tax
rate is 40% which thankfully doesn’t exist.
Parent
Relief
I had always thought I wasn’t eligible for this as my mother
is working on an ad-hoc basis.
However, it turns out that you can claim as long as your
parent’s annual income doesn’t exceed $4,000. That’s like $333.33 a month.
The best way to be sure is to check the CPF contribution. Since it’s under $500, there is no employee contribution, You only need to divide by the employer contribution rate.
This relief is substantial for me as I’m staying with my
parents so that’s $9,000 while if I were staying else where I could only get
relief of $5,500.
Also, if you have missed this previously, try reaching
out to IRAS and see if they can help you.
Bonus: Grandparent
Caregiver Relief
This relief is for working mothers only. (Fathers don’t switch off)
Generally, it is eligible when their parents/parents-in-law
are helping to look after their child who is below 12 years old.
The same annual income requirement of $4000 applies here and
the total relief you can get is $3000.
This relief can be stacked with Parent
Relief if the same parent qualifies.
PS: I realised most mothers do not know about this, so please share this around.🙏
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