Advise needed: CPF Top Up

[Alfpoon]

hi folks,

 

need some advise from those who top up your aged parent's cpf and gets a tax break for doing so. May I know how much do we need to top up to get how much tax rebate?

 

I was reading the CPF site but am very confused by the explaination as I am not familiar with these money matters.

 

could someone share or advise in simple terms how to go about it?

 

many thanks...

[Qpik]

suggest u make a trip down personally...u can find out more information

[Phoenix]

It works like tax relief, the amount topped up will be relief from calculation of income tax. There's a limit though

[Canisminor]

The limit of tax relief is $7000. So if u top up more than this you will still get the max relief of $7000.

 

I have done this top up recently, you just need to log to CPF with Singpass and make an application online to top up your parent's account, can be either from your CPF account or with cash. I did it with cash, just had to send a cheque to CPF Board quoting the application number. Prior to that I called CPF helpline and was told for cash top up no need to show documentary evidence of relationship, but for top up using your CPF need to include copy of birth cert etc to prove this is your parent.

[Alfpoon]

how much to top up to reach the limit of $7k tax relief?

[Canisminor]

$7k.

[Ultramega]

Top up your own CPF can get additional tax relief or not?

[Perrier]

[Yoongf]

From CPF website...(7K relief for own topup + 7K relief to top up immediate relatives)

 

You can enjoy tax relief of up to $7,000 per calendar year, if you use cash to top up for yourself and/or receive cash top-ups from your employer. You can enjoy an additional tax relief of up to $7,000 per calendar year if you use cash to top up for your siblings, spouse, parents or grandparents. To qualify for tax relief for cash top-ups for siblings/spouse, the sibling/spouse must have earned $2,000 or less in the preceding year.

 

http://ask-us.cpf.gov.sg/exploreMQA.asp?pr...nt=22992^23004^

[Patwong]

The limit of tax relief is $7000. So if u top up more than this you will still get the max relief of $7000.

 

I have done this top up recently, you just need to log to CPF with Singpass and make an application online to top up your parent's account, can be either from your CPF account or with cash. I did it with cash, just had to send a cheque to CPF Board quoting the application number. Prior to that I called CPF helpline and was told for cash top up no need to show documentary evidence of relationship, but for top up using your CPF need to include copy of birth cert etc to prove this is your parent.

 

Hi Canisminor, i noted regarding tax relief.

Can share with us the other benefit of topping-up to parents a/c?

[Tomcat]

Tax relief only for cash top up...if you use your cpf funds, there is no tax relief...

[Gearoil]

suggest u make a trip down personally...u can find out more information

 

Why go to so much difficulty to get tax relief when it is better not to pay any at all?

[Mummypenguin]

hi folks,

 

need some advise from those who top up your aged parent's cpf and gets a tax break for doing so. May I know how much do we need to top up to get how much tax rebate?

 

I was reading the CPF site but am very confused by the explaination as I am not familiar with these money matters.

 

could someone share or advise in simple terms how to go about it?

 

many thanks...

 

I topped up my mother's cpf account last year. she is older than 62.

 

I topped up $7k, which cpf will pay $297 to her saving account every month for 2 years.

I'm giving money to my mother anyway, so this has helped me reduce my income tax ~ $200.

 

Of course, if your pay is high, the tax rebate will be higher.

 

It is just a pity that we can't top up in-law's account to claim the tax relief.

[Scratchy]

I did it before with cash too...maximum 7k tax relief...i.e. this 7k is minus from your chargable income and not tax rebate

 

the tax savings differs depending your annual income and other reliefs...

[Dumb]

I still give my dad the same monthly allowance even though I top-up his RA.

[Alfpoon]

thanks for the information.