Things You Can Spend On NOW To Reduce Your Income Tax Next Year
Did you know that you can lower your taxes by just getting yourself a new mobile phone or computer?
It’s one of the tax reliefs that can help to lower your tax bracket and allow you to pay less income tax.
The list of reliefs can be grouped into three categories; status and family-type reliefs, life and medical, as well as expenses to enhance technology, knowledge and lifestyle.
What are tax reliefs?
According to Investopedia, tax reliefs are programs or incentives that reduce the amount of tax owed by an individual or business entity.
The IRB has underlined 21 reliefs and they range to healthcare for you or your loved ones, buying sports equipment to even purchasing a new laptop.
For your convenience, we’ve compiled some of those tax reliefs for you:
1. Pay your parents’ medical expenses
If you’re paying for your parent’s medical expenses you’re eligible to claim relief of up to RM5,000 but if your parents are still strong and healthy you can still claim tax reliefs of up RM1,500 per parent if you gift them the money.
2. Uplift your lifestyle
Did you know that you can claim for reliefs for books, that new smartphone or computer?
This was introduced by the government in 2007 to encourage good reading habits, nurture healthy lifestyles, and enhance the use of computers and the internet.
You can claim up to RM2,500 to purchase a personal computer, smartphone or tablet and it’s not just limited to electronics as you can also claim for the purchase of sports equipment, gym memberships and also your monthly internet subscriptions as well.
3. Prepare your child for the future
For those who just started families, there are reliefs for breastfeeding equipment where you can claim up to RM1,000.
Also, to ensure that your kids are taken care of while you’re away at the office, the IRB offers tax reliefs of RM1,000 for child care fees to a registered child care centre/ kindergarten for a child aged 6 years and below.
Not only that, the IRB has allowed for RM2,000 tax relief for each child under 18 years old and RM2,000 for each unmarried child above 18 who is receiving full-time education such as A-Level, certificate, matriculation or preparatory courses.
If your children are continuing their studies, either here or abroad, another RM8,000 can be deducted.
There’s also RM8,000 in tax reliefs if you choose to invest in Skim Simpanan Pendidikan Nasional for your child as well.
4. Further your studies and look after your health
Have you ever dreamed of furthering your studies but the financials have always been the stumbling block?
The government has allowed relief of RM7,000 to lessen your financial burden and approved courses include law, accounting, Islamic financing, technical, vocational, industrial, scientific or technology.
It’s not just education as you can also claim for RM6,000 tax relief for medical expenses of serious diseases and it not only applies to yourself but your spouse or child as well.
You can also claim RM6,000 for complete medical examinations.
5. Help the differently-abled
The government has allowed relief of RM6,000 for the purchase of supporting equipment for disabled self, spouse, child or parent.
There’s also tax relief of RM6,000 for the handicapable yearly and you’re also eligible for RM3,500 yearly tax relief if your spouse has disabilities.
There’s an additional exemption of RM8,000 for differently-abled children aged 18 years and above, who are not married and are pursuing higher education.
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