How do you save on your taxes?

Samaritan101

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Doantions tax relief is 250% of the amount you donated. Minimum donation is $50. For example, you donate $50 this year then your tax relief is income taxable - $125.
 

Samaritan101

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If you paid $50 and received a tax benefit of atmost 17% of $125 = $20. How did you save money????
It goes like this bro, you donate $600. Tax relief is 250%.

Tax deductible = $1,500

For example,
Tax income taxable is $30,000 (after deducting all the eligible tax reliefs)
Total taxable income will be $28,500

Correct me if I am wrong.
 

commie_rick

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be a employee , spilt salaries into 2 parts

a.part of is below the taxable rate
b. the remaining amount is in stocks and share
 

Value.Matrix

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It goes like this bro, you donate $600. Tax relief is 250%.

Tax deductible = $1,500

For example,
Tax income taxable is $30,000 (after deducting all the eligible tax reliefs)
Total taxable income will be $28,500

Correct me if I am wrong.

Let's do some hard numbers.... based on financial only..

(1) Donate $600. Tax relief is 250%
(2) Tax relief is $1,500 (not tax rebate... quite sensitive to accountants)
(3) Imagine you have 22% tax (highest bracket).
(4) Tax saved = $1,500 X 22% = $330
(5) You donated $600 to get a $330 tax relieft.
(6) Savings = $330 - $600 = (-$270)
(7) You donated $270 to charity, but charity gain $600.

For lower tax rates... hmm
 

Sharonnnn

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First $120,000 - 7,950 Gross Tax Payable ($)
Next $ 40,000 - 15% = 6,000 Gross Tax Payable ($)



First $160,000 - 13,950 Gross Tax Payable ($)
Next $ 40,000 - 17% = $6,800


so for those e.g. in the 160k and want to go down 1tier to 120k, must / can only do CPF deposit? liked this if the person is 160k, must deposit 40k to CPF to save on the (13950 - 7950) tax??? but the money deposit into CPF, when can get to see or even got chance to take out or not?

Thanks!

If you're an investment or saving person, you can opt for SRS account instead of CPF.
SRS is a tax relief account, contribution capped at $15300 pa for citizen and $35700pa for foreigner is if I'm not wrong.
 

Patricia Law

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If you're an investment or saving person, you can opt for SRS account instead of CPF.
SRS is a tax relief account, contribution capped at $15300 pa for citizen and $35700pa for foreigner is if I'm not wrong.
Hi Sharonnnn,

Yes this is correct. Open a SRS account with one of the local banks and you can reinvest in a product to save for retirement. At AIA we have one plan that can use this fund to save for retirement which can bring you high potential returns. Example with single premium of $15,300 (using SRS account) at age 41 years, you can retire at 67 years old with a potential monthly payout of $865 for 10 years (total payout $103,800).

This amount can stack up with your CPF life payout as part of living expenses. Let me know if are interested to find out more.
 

8zaoyu

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Hi Sharonnnn,

Yes this is correct. Open a SRS account with one of the local banks and you can reinvest in a product to save for retirement. At AIA we have one plan that can use this fund to save for retirement which can bring you high potential returns. Example with single premium of $15,300 (using SRS account) at age 41 years, you can retire at 67 years old with a potential monthly payout of $865 for 10 years (total payout $103,800).

This amount can stack up with your CPF life payout as part of living expenses. Let me know if are interested to find out more.

Then do you have a single premium of $15.3k for using SRS for an over 55 yr old senior?
 

zphoe222

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No Job but have income from a rental property

Hi friends
For discussion: Any ways to minimise the income taxes on the rental income whilst employment income is 0.

example
Employment income = 0
Rental income = 100k

SRS = 15300
anything else one can do?
 
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recruit

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What are the considerations when deciding between to top up for SRS or SA account?

By the way is the $7k top up a one off limit or is it a quota that you can use every tax assessment year?
 

winthony

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What are the considerations when deciding between to top up for SRS or SA account?

By the way is the $7k top up a one off limit or is it a quota that you can use every tax assessment year?

For CPF SA top up, the limit are 7k for personal and 7k for family whereas SRS is 15.3k.

SRS allows early withdrawal as well subjected to a penalty of 5%.

Yearly limit :)
 
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