Save $2,070 in your tax

There are lots of ways to save on your tax. Below are some of the easiest way and some with no cash out :)

1) CPF Cash Top-Up Relief

    a) Top-up your own CPF Special Account (SA) / Retirement Account (RA)

        Up to $7,000 relief

    b) Top-up CPF Special Account / Retirement Account for the following:

        - Parents or Parents-in-law

        - Grandparents or Grandparents-in-law

        - Spouse*

        - Siblings*

        Up to $7,000 relief

        *For spouse and siblings, their annual income should not exceed $4,000/year

    Note:

    - Recipient's SA should not be more than FRS ($161,000 as of 2016). Anything above FRS is not tax deductible

    - Details can be found by clicking here: IRAS Link

2) Parent Relief / Handicapped Parent Relief

    Supported the following dependants, whom their annual income is less than $4,000:

      - Parents

      - Grandparents

      - Parents-in-law

      - Grandparents-in-law

    a) Taxpayer stays with Dependant

        $9,000 per dependant

    b) Taxpayer does not stay with Dependant

        $5,500

    c) Taxpayer stays with handicapped Dependant

        $14,000 per dependant

    d) Taxpayer does not stay with handicapped Dependant

        $10,000

    - Details can be found by clicking here: IRAS Link

3) Supplementary Retirement scheme (SRS)

    Up to $15,300

    => Please wait for our next article

Maximize your tax savings:
$11,000 - Grandparents x2

$11,000 - Parents x2

$7,000 - Top up your personal CPF

$7,000 - Top up your parents'/grandparents' CPF

$15,300 - Top up SRS

Total reliefs: $51,300

If your annual income:

    a) >$71,300 ($20k tax bracket + $51.3k) => NO tax at all. You just save yourself $2,741 cash

    b) >$81,300 ($30k tax bracket + $51.3k) => You just save yourself $3,500 cash

    c) >$91,300 ($40k tax bracket + $51.3k) => You just save yourself $4,650 cash

    d) >$131,300 ($80k tax bracket + $51.3k) => You just save yourself $9,645 cash

Current tax rates can be found here: IRAS Link

WHOptimized:
Minimally, assuming your grandparents or parents are no longer working and staying their own, you can save up to $5,500 x2 = $11,000 chargeable income. Top up your own CPF SA and save another $7,000 relief.

If your annual income:
    a) >$58,000 ($40k tax bracket + $18k) => You just save yourself $1,260 cash
    b) >$98,000 ($80k tax bracket + $18k) => You just save yourself $2,070 cash

If you have extra, you can top up your parents CPF or if you parents want to top up their CPF with cash, ask them to go through you and you can save additional $7,000 of your chargeable income.