Parenthood Tax Rebate
The Parenthood Tax Rebate, a one-off claim parents can make after the kid is born, allows you to claim rebates ranging from $5,000 to $20,000 per child, depending on the child’s birth order.
Parent Relief or Handicapped Parent Relief
You can claim for Parent Relief up to $9,000 per dependant if you live with the dependant (or $5,500 if you don’t) or Handicapped Parent Relief of up to $14,000 per dependant if you lives with the dependant (or $10,000 if you don’t).
This relief can be claimed on up to two dependants and can be shared between claimants – like you and your siblings – on an agreed apportionment.
A dependant includes your spouse’s or your father, mother, grandparent and great-grandparent.
Qualifying Child Relief or Handicapped Child Relief
Qualifying Child Relief (QCR) amounts to $4,000 per child or Handicapped Child Relief (HCR) of $7,500 per child, which can be shared between husband and wife.
Good news if you have a child born in 2018 and are e-filing your tax return this year. Iras will pre-fill your relief of $4,000 to simplify the process, based on a 50:50 share between parents (you can change the ratio when you file).
Working Mother's Child Relief
If you are a working mum, you can claim the Working Mother’s Child Relief, which ranges from 15 per cent to 25 per cent of your earned income, depending on how many kids you have.
Do note that Qualifying Child Relief or Handicapped Child Relief plus Working Mother Child Relief is capped at $50,000 per child.
The child has to be below 16 years of age or studying full time at any university, college or educational institution at any time last year, and the child should not have earned an annual income exceeding $4,000 last year.
Annual income includes taxable income (for example, from trade, employment, national service allowances and rental); tax-exempt income (such as bank interest, dividends and pensions), foreign-sourced income (regardless of whether it has been remitted to Singapore); and income from internship and attachment.
Foreign Maid Levy Relief or Grandparent Caregiver Relief
If you have a foreign domestic worker or parents/grandparents/ parents-in-law/grandparents-in-law taking care of your children, you can also claim Foreign Maid Levy Relief and Grandparent Caregiver Relief (GCR).
For GCR, you will need to satisfy the condition of being a working mother who is married, divorced or widowed.
Another condition is that your parent, grandparent, parent-in-law or grandparent-in-law (including that of ex-spouse) was living in Singapore last year.
In the case of a foreign dependant, generally, if he lived in Singapore for a period of at least eight months last year, he will be regarded as living here.
You qualify if any of your children is a Singapore citizen, 12 years old and below last year, and the caregiver was not working or carrying on any trade, business, profession, or vocation last year. One condition is that no one else has claimed GCR on the same caregiver.
Course fee relief
You can claim Course Fee Relief of up to $5,500 each year for any course, seminar or conference leading to an approved academic, professional or vocational qualification, or relating to their current employment, trade, business, profession or vocation.
If you are a Stay-at-Home mum, your husband can claim Spouse Tax Relief for the household. Your earnings must be less than $4,000 in the previous year. This includes all of your income, even from your side hustles (like that shop you have on Etsy selling your crochet projects). You can claim up to $2,000 or $5,500 for Handicapped Spouse Relief.
Life Insurance Relief
If you have taken out a life insurance policy to ensure the financial security of your loved ones after you pass on, you may be able to claim tax relief for it.
The catch is that in order to qualify for Life Insurance Relief, your employee or voluntary self-employed CPF contributions and Medisave contributions should have been less than $5,000 in the financial year.
For a salaried employee under the age of 35, that means you won’t qualify for this tax relief if you earn an annual salary of $25,000 a year or more.
Check your eligibilty
Check your eligibility for personal reliefs or rebates using the Personal Reliefs Eligibility Tool and Parenthood Tax Rebate Eligibility Tool found in Iras’ tax filing guide here.
(Text: Young Parents / Additional reporting: Natalya Molok)