Here are additional tax-saving strategies you can use to optimize further:
1️⃣ CPF Top-Ups for Tax Relief
Voluntary CPF Top-Ups (Up to $16,000 tax relief per year)
-
Self CPF Top-Up: Up to $8,000 tax relief if you voluntarily contribute to your CPF Special Account (SA) or Retirement Account (RA).
-
Family CPF Top-Up: Another $8,000 relief if you top up your spouse’s, parents’, or siblings’ CPF (if they earn below $4,000 annually).
📌 Extra Tax Savings:
-
If you contribute $16,000 annually, your taxable income drops further, saving you another $1,600 to $2,000 per year in taxes.
-
Over 8 years, this adds up to $12,800 - $16,000 in tax savings.
2️⃣ Supplementary Retirement Scheme (SRS) Contributions
-
You can contribute up to $15,300 per year (for Singaporeans/PRs) into an SRS account.
-
Contributions reduce your taxable income immediately.
-
Money can be withdrawn after age 62, and only 50% is taxable.
📌 Extra Tax Savings:
-
If you contribute $15,300 per year, you can save an extra $1,500+ per year in taxes.
-
Over 8 years, this is an additional $12,000+ in tax savings.
3️⃣ Claim All Family-Related Tax Reliefs
Spouse and Parent Reliefs
-
Spouse Relief: $2,000 (if spouse earns <$4,000).
-
Handicapped Spouse Relief: $5,500 (if applicable).
-
Parent Relief: $9,000 (if parents aged >55 & earn <$4,000).
-
Handicapped Parent Relief: $14,000 (if applicable).
📌 Extra Tax Savings:
-
If claiming Spouse + Parent Relief, you can reduce taxable income by $11,000 - $16,000, saving $1,100 - $1,600 per year.
-
Over 8 years, this adds up to $8,800 - $12,800 in tax savings.
4️⃣ Rental Property Tax Deductions
If you own a rental property, you can deduct expenses like:
✅ Mortgage interest
✅ Property tax
✅ Repairs & maintenance
✅ Agent fees
📌 Extra Tax Savings:
-
If your rental expenses are $10,000 per year, you avoid paying $1,000+ in taxes per year.
-
Over 8 years, that’s another $8,000+ in tax savings.
💰 Total Additional Tax Savings Over 8 Years
| Strategy | Estimated Tax Savings Per Year | 8-Year Savings |
|---|---|---|
| CPF Top-Ups | $1,600 - $2,000 | $12,800 - $16,000 |
| SRS Contributions | $1,500+ | $12,000+ |
| Family Reliefs (Spouse & Parents) | $1,100 - $1,600 | $8,800 - $12,800 |
| Rental Property Deductions | $1,000+ | $8,000+ |
| Total Additional Tax Savings | $5,200+ | $41,600+ |
👉 Grand Total Tax Savings (Including Child Reliefs)
$60,600 + $41,600 = $102,200+ over 8 years! 🎉
No comments:
Post a Comment