Eh, Singaporeans, feeling the pinch? With everything getting more expensive, it’s time to be kiasu about our money! Good news is, there are legit ways to save on taxes and boost your savings. Let’s dive into some tips that can help you keep more of your hard-earned cash, based on some really helpful videos I found.
Maximize Your Tax Reliefs
First things first, are you claiming all the tax reliefs you’re entitled to? Many of us leave money on the table! For example, earned income relief is automatic, and it increases as you get older – up to $8,000 for those 60 and above! Also, if you’re supporting your parents, you could get up to $14,000 in parent relief if they live with you and have a disability. Don’t forget about NSmen relief too, which is automatic if you’ve done your NS duties. Every little bit helps, right?
Josh Tan from TheAstuteParent highlights that there are many reliefs available, including life insurance relief, course fee relief, and even CPF relief. For employees, CPF relief is capped at $20,400, while self-employed individuals can get up to $37,740. And for all you working mothers out there, there are specific reliefs like working mother child relief and foreign domestic worker levy relief. Make sure you check what you qualify for!
Supercharge Your Savings with SRS
Next up, let’s talk about the Supplementary Retirement Scheme (SRS). This isn’t just for retirement; it’s a powerful tax-saving tool! Josh Tan explains that topping up your SRS can give you a tax relief of up to $15,300. While withdrawals before age 63 incur penalties, there are strategies to minimize the tax impact. For example, withdrawing up to $40,000 annually over 10 years could mean only $20,000 is taxed, potentially falling within the tax-free bracket. Plus, you can invest your SRS funds in various instruments, from low-risk options like Singapore Savings Bonds to higher-risk options like ETFs and stocks. Don’t let your SRS funds sit idle!
Strategic Cash Management
Now, let’s talk about making your cash work harder. Chris from HoneyMoneySG shares his ‘ding-dong’ strategy, moving funds between high-interest accounts to maximize promotional benefits. He mentions the OCBC 360 account, which currently offers 4.65% per annum with certain conditions. He also uses promotions from platforms like Moomoo and Longbridge Singapore to earn bonus interest. While these are not long-term solutions, they are great for short-term gains. Remember, interest rates are always changing, so keep an eye out for the best deals!
Don’t Forget About CPF Top-Ups
Finally, let’s not forget about our CPF! You can get tax relief by topping up your CPF accounts, especially your Medisave. As Josh Tan points out, it’s a good idea to top up your Medisave first. Chris from HoneyMoneySG also mentions that CPF relief is a significant part of his tax optimization strategy. Remember, the annual tax relief cap is $80,000, so plan your contributions wisely. And if you’re thinking about transferring from your Ordinary Account to your Special Account, do your research first!
Actionable Steps for You
So, what should you do now? Here’s a quick summary:
- Review your tax reliefs: Make sure you’re claiming everything you’re entitled to.
- Consider SRS contributions: Top up your SRS for tax savings and retirement planning.
- Maximize high-interest accounts: Move your cash strategically to take advantage of promotions.
- Top up your CPF: Especially your Medisave, for tax relief.
- Plan ahead: Tax optimization is personal, so tailor your strategy to your situation.
Don’t wait till the last minute! Start planning now to maximize your savings and tax benefits. Every dollar saved is a dollar earned, right? Happy saving, everyone!
I Found ALL THE INCOME TAX RELIEFS To Save You Money! Updated 2024 by Josh Tan – TheAstuteParent
Why Singaporeans Should Top Up To SRS In 2025! 5 Surprising Findings On SRS And Tax Relief! by Josh Tan – TheAstuteParent
My Ultimate Cash Strategy before 2024 ends by Chris @HoneyMoneySG
My Income Tax Relief for 2024 by Chris @HoneyMoneySG