Filing your taxes can be cumbersome but if you know the different ways in which you can get tax relief, it’ll ease half the burden. Besides, planning and tax-saving ahead is important to managing your finances. There are multiple areas in which you can claim tax relief and having a clear idea will help make it easier for you. Here are 14 ways to lower your tax bill.
Taxable Income Relief
An income tax relief of between $1,000 and $8,000 is available for those with a taxable income from employment, a pension, trade or business. Those who are between 55-59 years can claim up to $6,000 while those who are over 60 can claim $8,000. Exemption amounts can be between $4,000 and $12,000 for those with physical or mental disability.
Tax Relief for Filial Duties
If your spouse earns less than $4,000 you can claim spouse relief up to $2,000. If the spouse has disability, a relief amount of $5,500 is available. Once spouse relief is applied, children cannot claim parent relief.
For an unmarried child below 16 years of age, with an annual income of less than $4,000, a qualifying child relief fund can be applied. If the child is disabled, the exemption limit is $7,500. As long as your child – even those above 16 years – is studying full-time at an educational institution such as secondary school, polytechnic, junior college or university, you can apply for some tax relief. To encourage working mothers, a tax relief starting at 15% of the mother’s income is applicable which can be increased by 5% for each new child. It is known as working mother’s child relief and the upper limit is 25% for three or more children.
Singaporeans who support parents, grandparents, in-laws can apply for parent relief provided the dependent is 55yrs of age or have a disability. Depending on where the dependant stays, tax exemption can vary from $5,500 to $9,000. If the dependant has a disability, minimum and maximum exemption limits can vary between $10,000 and $14,000.
A claim of up to $3,000 is allowed under Grandparent Caregiver Relief if working mothers engage the help of grandparents, parents or in-laws for the care of a child who is not more than 12 years of age and is a Singapore resident. The caregiver should be a resident as well and should not be employed or running a business.
There is the handicapped brother/sister relief applicable for the support of a sister/brother or sister/brother-in law who has some disability. The maximum exemption allowed is $5,500 for each sibling.
Read more on 14 strategies to reduce your Personal Income Tax at InCorp Global.
