Under the Singapore tax system, parents, grandparents, or any in-laws who are supported by individuals caring for them receive relief. The IRAS Parent Relief is granted to reduce taxable income, providing a great deal of tax relief to the caregivers. The assistance provided specifically for the elderly dependents can amount to huge savings in taxes.
What is IRAS Parent Relief?
Parent Relief is a tax relief particularly for individuals who are supporting their parents or grandparents because of old age. It allows for tax losses incurred on the subsidiary incomes that immediately reduce the tax payable. No matter if the dependent stays with you, the relief applies as long as there are still caregiving and financial support.
Eligibility Criteria
To qualify, the dependant must include your biological or adopted parent or grandparent, or be a parent or grandparent of a spouse. He or she has to be 55 years or above or any age and physically or mentally disadvantaged. This individual should be a Singaporean citizen or a permanent resident of Singapore. His or her annual income should not exceed $4,000 without counting CPF payouts, annuities, or insurance claims.
If the parent lives with you, a more significant relief can be claimed. In cases where more than one pair of siblings are providing support to a parent, the relief will be shared, but this relief cannot be claimed more than the stipulated maximum amount.
Benefits and Amounts
The reliefs given to the living dependents are from $9,000 per dependent for those living with the individual. Otherwise, the reliefs, $5,500 each, are allowable if the dependent doesn’t live with the individual. This relief can be claimed for a maximum of two dependents, which totals a maximum relief of $18,000 when both parents live with you.
| Living Situation | Amount of Tax Relief |
|---|---|
| Parent lives with you | $9,000 per parent |
| Parent does not live with you | $5,500 per parent |
Key Dates for Parent Relief Claims
Parent Relief tax filing normally kicks off from March through April 18, 2025 if you are a paper filer. Make sure the time and dates of submission do correspond with the closing date of the tax year of assessment.
How to Claim IRAS Parent Relief?
To claim the relief, log in to myTax Portal on the IRAS website and navigate to the deductions and reliefs section. Fill in the details about your dependent, confirm their eligibility, and submit your claim before the deadline.
Final Thoughts
Parent Relief is significant for those who are Singaporean and give financial aid to parents who are elderly. If you comprehend the qualifications and claim process, then you can maximize the tax savings you deserve while you ease the burden on those you love. Do not miss the deadlines when found and stay up-to-date on any changes introduced to the plan.