Options (or combinations) to maximize your tax reliefs

[Shiori]

Once again the yearly event of reporting personal income tax is here again.

In preparation for YA25, what strategies will you deploy (how will you deploy) this year to maximize your tax reliefs ?

Employment Expenses - For those incurred and not reimbursed by employers
https://www.iras.gov.sg/taxes/individual-income-tax/basics-of-individual-income-tax/tax-reliefs-rebates-and-deductions/employment-expenses

Course Fee Relief - Maximum $5500
https://www.iras.gov.sg/taxes/individual-income-tax/basics-of-individual-income-tax/tax-reliefs-rebates-and-deductions/tax-reliefs/course-fees-relief

Donations - 250% tax deduction for every $1 donated to an IPC
https://www.iras.gov.sg/taxes/other-taxes/charities/donations-tax-deductions

CPF top-ups - Maximum $8000 tax relief (self), $16000 tax relief (self + family member)
https://www.iras.gov.sg/taxes/individual-income-tax/basics-of-individual-income-tax/tax-reliefs-rebates-and-deductions/tax-reliefs/central-provident-fund-(cpf)-cash-top-up-relief
https://www.iras.gov.sg/docs/default-source/individual-income-tax/employees/cpf-cash-top-up-relief.pdf?Status=Master&sfvrsn=9745769c_25
https://www.iras.gov.sg/taxes/individual-income-tax/basics-of-individual-income-tax/tax-reliefs-rebates-and-deductions/tax-reliefs/compulsory-and-voluntary-medisave-contributions

SRS contribution - Yearly maximum contribution of $15300
https://www.iras.gov.sg/taxes/individual-income-tax/basics-of-individual-income-tax/special-tax-schemes/srs-contributions
https://www.iras.gov.sg/taxes/individual-income-tax/basics-of-individual-income-tax/special-tax-schemes/tax-on-srs-withdrawals

I feel like the strategy of SRS + donation is more ideal. Although early withdrawal and etc of SRS can attract penalty and tax, but at least I can take out everything eventually. In comparison, CPF money once inside, can see but cannot touch fully.

Can also fully utilize the tax deductions for employment expenses (those not reimbursed by employer) and course fee relief too.

What do you guys think ?

[default]

thanks....... but my tax high coz i "live" with my cousin

his salary high i think

if not i cannot get subsidy for my father's nursing home... either way also die

[nyvrem]

pump into CPF is make you feel happy nia.

dunno can ever get back $$ or not.

[Shiori]

pump into CPF is make you feel happy nia.

dunno can ever get back $$ or not.

I curious why people choose to pump into CPF and not SRS. Is it just because CPF give higher % ? But money go inside machiam locked for life...

[Shiori]

thanks....... but my tax high coz i "live" with my cousin

his salary high i think

if not i cannot get subsidy for my father's nursing home... either way also die

Hi sorry I dont really get what you mean your first 2 lines.

[sTiCkY]

Hi sorry I dont really get what you mean your first 2 lines.

gotch tax rebate based on household income these 2 years i think

[default]

Hi sorry I dont really get what you mean your first 2 lines.

meaning i cant get much reliefs i think. Coz i dont live w my dad.

If u also not married etc not much others to claim right

[Shiori]

meaning i cant get much reliefs i think. Coz i dont live w my dad.

If u also not married etc not much others to claim right

I thought you can still claim for parent relief even if you don't live with your parent ?

Must be married & have children then have more reliefs to claim, but do take note females have more reliefs as compared to males, can share vs cannot share, so need to check and calculate how to maximize the tax reliefs.

[default]

I thought you can still claim for parent relief even if you don't live with your parent ?

Must be married & have children then have more reliefs to claim, but do take note females have more reliefs as compared to males, can share vs cannot share, so need to check and calculate how to maximize the tax reliefs.

oh ya can claim that part but i only 1 parent.

Donations part actually cant claim much. Officially i donate abt 300 or more slightly only, to giving.sg

Donations very little  claimable one la

[Shiori]

oh ya can claim that part but i only 1 parent.

Donations part actually cant claim much. Officially i donate abt 300 or more slightly only, to giving.sg

Donations very little  claimable one la

Can claim just claim, claim as much as possible. Don't want to pay so much taxes.

Donations is $2.50 relief per every dollar. If already max out CPF & SRS reliefs and can still bring your chargeable income 1 level down the tax bracket with donations, might be a good option ? Of course some may think "aiya, might as well pay the taxes better instead of donating more just to save that maybe $1000 tax nia"

But what I feel is, if I am paying taxes to the country and our world class management is using taxpayers money to do things like funding skillsfuture, funding grants for SMEs or ridiculous food pricing for the military cookhouses...I rather don't pay a single cent...