Did I File Tax Wrongly?

[Chiongster]

I just helped my dad to file his tax and I can't help notice that his tax payable is much higher than mine cos...... he is over 60 and he does not pay much CPF to offset his tax assessable income.

 

Am I right in this assessment? Have u noticed the same? Any tax experts here? I notice lots of younger folks pay less than 30K assessable income as the CPF deduction is high.

[Acieed]

For younger people with family lots of rebate like NS, kids, parenthood, elderly parents in household, working mother (for women), insurance, cpf contributions etc.

[Singhao]

It means ur dad is earning much higher than u haha..

[Eviltrap]

  On 4/12/2011 at 4:03 PM, Acieed said:

For younger people with family lots of rebate like NS, kids, parenthood, elderly parents in household, working mother (for women), insurance, cpf contributions etc.

 

Is it confirmed we can claim for insurance?

[Chucky2007]

Why dun u read the filing guide, especially on relief guide properly before submitting? Else call on IRAS to check..

[Joseph22]

  On 4/12/2011 at 10:58 PM, Eviltrap said:

Is it confirmed we can claim for insurance?

 

yes, provided we are lower income group.

[Ysc3]

CPF and insurance combined will not exceed $5k.

 

eg, if your CPF is $6k, then u cannot claim unsurance liow.

 

anyway, i think this year got quite a number of people rcvd letter from IRAS that they no need to file tax returns unless there are changes to claims from last year.

 

also, you shud be getting a 20% cut on your tax.

 

btw, if you used e-filing, you have 1 chance to do online revision.

Edited April 13, 2011 by Ysc3

[Fooblack]

  On 4/12/2011 at 1:37 PM, Chiongster said:

I just helped my dad to file his tax and I can't help notice that his tax payable is much higher than mine cos...... he is over 60 and he does not pay much CPF to offset his tax assessable income.

 

Am I right in this assessment? Have u noticed the same? Any tax experts here? I notice lots of younger folks pay less than 30K assessable income as the CPF deduction is high.

 

not to worry. CPF contributions are usually the highest relief you have in your return. your dad din contribute much so his deductions will be significant lower.

 

as for you, if you are employed, your deductions from CPF contributions will be very high.

 

Technically, even if you are earning income higher than your dad, due to the higher deductions, you can wind up having lower assessable income.

 

hope this helps.

 

[Icedbs]

  On 4/12/2011 at 4:03 PM, Acieed said:

For younger people with family lots of rebate like NS, kids, parenthood, elderly parents in household, working mother (for women), insurance, cpf contributions etc.

 

This is where the FT lose out. They don't have all these. All these rebates can really help out quite a lot every month.

 

So there is still differentiation for Sporeans.

[Chiongster]

Hmmm... the crux of my question is probably more 'policy' than anything

 

Cos u see... with the increased cost of living and lifting of the retirement age, people, like my Dad will have to work more years. But I notice that the tax deductions(correct me if I am wrong) available for the more martured workforce are not as good as the younger workforce.

 

For eg, CPF contributions drop after 50, and that also reduces the tax deductions causing a double whammy situation. See CPF contributions here http://mycpf.cpf.gov.sg/Members/Gen-Info/C...es/ContriRa.htm

 

Also, other deductions like child relief would be irrelevant as the children would all be grown up liao. Parent or grandparent relief would also be irrelevant as they would most likely have passed on.

 

I am just hoping that maybe in the near future, with a more aging workforce, we can see more tax deductions specifically for pple who choose to contribute to the economy despite of their old age.

[Chucky2007]

  On 4/13/2011 at 1:43 AM, Icedbs said:

This is where the FT lose out. They don't have all these. All these rebates can really help out quite a lot every month.

 

So there is still differentiation for Sporeans.

All tax relief and debates for tax residents. Ft who stays more than 183 days in singapore, are all tax residents, unless they die die have to pay tax in their own country then dun have to pay tax in singapore

[Acieed]

Looks like it maybe an oversight when gahmen raise retirement age, but I'm no tax expert here. Perhaps you can help seek clarification from CPF and IRAS and share your findings here :-)

 

For high income groups, this wouldn't matter since employer CPF contribution has an upper limit anyway. These people also tend to have life insurance so the tax deductions for CPF+insurance may stay the same at an older age. For lower income groups, some may not have life insurance and do not get as much CPF contributions. If your dad is self-employed, and do not voluntarily contribute CPF, that's another factor consider too.

 

 

 

[Joseph22]

  On 4/13/2011 at 2:11 AM, Chucky2007 said:

All tax relief and debates for tax residents. Ft who stays more than 183 days in singapore, are all tax residents, unless they die die have to pay tax in their own country then dun have to pay tax in singapore

 

Can confirm?? cause i remember only citizen have. cause all my colleague who are PR and on S-pass last year have to give higher taxed than me although they earn lesser.

[Acieed]

If I haven't mistaken, parenthood, working mother and child relief are only for parents with Singaporean children (before a certain age). This is to encourage more Singapore babies. If not, then the policy is truly broken.

 

CPF and NS.. I supposed PR and Citizens only. Not sure about the rest.

 

  On 4/13/2011 at 2:11 AM, Chucky2007 said:

All tax relief and debates for tax residents. Ft who stays more than 183 days in singapore, are all tax residents, unless they die die have to pay tax in their own country then dun have to pay tax in singapore