Income Tax Rebate and Relief for the Family - - Singapore Wacky Digital Underground Outpost

Income Tax Rebate and Relief for the Family

It's tax time!

* This post is meant for information only and does not constitute tax advice
Do refer to IRAS for more details on tax rebates.

The deadline to submit your income tax is on 18 April.

If you have not done so, you ought to be preparing your tax forms right now. Other than declaring your income, you should also look into maximizing your tax rebate and relief. If you have a family, these are the rebate and reliefs to be taken into consideration in your tax filing.

A tax rebate will be used to offset the actual income tax paid. Tax relief would help to reduce the amount taxable.

Parenthood Tax Rebate (PTR)
If you have a child born in the last few years, you qualify for Parenthood Tax Rebate.

For children born from 2008 onwards, theses are the rebates you can expect.
1st Child $5000
2nd Child $10000
3rd Child $20000
4th Child $20000
5th and subsequent child $20000

The rebate can be shared between parents. PTR will carry follow to the next tax year automatically if there are a remaining balance in the account.

Qualifying Child Relief (QCR) / Handicapped Child Relief (HCR)

You may claim QCR / HCR for the year of assessment if you have a child below 16 yeas old or studying full time at any university, college or other educational institution at any time in 2017.
The child also should not have an annual income of $4000. For HCR, the child is to be mentally or physically handicapped.

Amount of Relief
QCR - $4000 per child
HCR - $7500 per child

You can only claim QCR or HCR in the same child. Relief can be shared between spouses. Note that there is a cap of $50,000 per child for Working Mothers claiming Working mothers Child Relief (WMCR) and QCR

Spouse Relief
You can claim spouse relief if your spouse is living with or supported by you in the previous year. Besides, your spouse does not have an annual income exceeding $4000 in the previous year (does not apply to handicapped spouse). There are other guidelines for Legally separated spouses and divorced spouses. Do refer here for clarification.

Amount of Relief
Spouse Relief: $2000
Handicapped Spouse Relief $5500

Foreign Maid Levy (FML) Relief
FML relief is provided for married women who are working. To claim this relief, you must satisfy the following conditions

1 You or your husband employed a foreign domestic worker in 2017
2 You were married and lived with the husband or married and your husband was not a tax resident or separated from husband, divorced or widowed and had children who lived with you.

Amount of Relief
Twice the total foreign domestic worker levy paid
Total Levy paid in 2017 $3180 ($265 x 12) - Maximum Relief $6360
Total Levy paid in 2018 $720 ($60 x 12) - Maximum Relief $1440

Grandparent Caregiver Relief (GCR)
GCR is given to working mothers who engage the help of their parents, parents-in-law or grandparents-in-law to take care of children.

To qualify for this, you have to be a working mother who is married, divorced or widowed. Also, do refer to the following guidelines for qualification. Only one person can claim GCR on the same caregiver.

Amount of Relief
You can claim up to $3000 on one of the parent, grandparents or in-laws.

Working Mother's Child Relief ( WMCR)
WMCR is given to married women who remain in the workforce after having children.
To qualify, you need to maintain a child who is a Singapore Citizen and you are earning a taxable income from employment, pensions, trade, business, profession or vocation. For more qualifiers, do refer here

Amount of Relief
1st Child - 15% of mother's earn income
2nd Child -20% of Mothers earn income
3rd child and beyond, 25% of mothers earned income

Do note that for Year of Assessment 2018, the total reliefs claimed will be capped at $80,000. This cap applies to the total amount of all tax reliefs claimed

Don't forget to submit your taxes!

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