lifestyle

[VIDEO] Here's How To Get The Most Out Of Your Tax Relief Before 2021

Taking advantage of certain incentives could also help you get a bigger tax refund.

Cover image via SAYS (YouTube)

In March 2021, we'll be filing our taxes for the fiscal year of 2020. That means any expenses you make in the next few weeks could be claimable.

If you have taxable income in the form of monthly deductions (RM34,000 per annum), you may be overpaying your taxes.

Maxing out the tax relief / rebate section lowers your tax income bracket, which in turn, will lower the tax percentage you pay, and perhaps help you get more money back.

Taking advantage of certain incentives could also help you get a bigger tax refund.

Watch the full video below to find out how to get the most out of your tax relief:

[FINAL VIDEO TO BE EMBEDDED]

Here’s a list of tax relief you may be eligible for under Budget 2021:

1. With the PTPTN savings scheme, parents can get up to RM8,000 income tax relief for their child’s higher education savings

Info sourced from LHDN.

Image via SAYS (YouTube)

By depositing into either of the PTPTN savings account (SSPN-i or SSPN-i Plus), you can claim up to a maximum of RM8,000 tax relief per annum.

And with SSPN-i Plus, you can claim an additional RM7,000 in tax relief, because it counts as contributing to a takaful plan.

SSPN-i Plus is a PTPTN savings account that comes with takaful insurance coverage. The coverage is up to RM1 million, covering over 36 critical illnesses with hospitalisation allowance. It requires a monthly deposit between RM30 to RM500.

SSPN gives competitive dividends, and children with SSPN savings are immediately eligible to apply for PTPTN loans in the future.

You will be eligible for the tax relief as long as you save with SSPN before 31 December. This incentive has been extended until 2022 to encourage parents to start saving for their child’s education today.

2. The lifestyle tax relief is now raised to RM3,000, so make sure to claim your lifestyle-related purchases

Info sourced from LHDN.

Image via SAYS (YouTube)

The RM3,000 tax relief includes a RM500 increase specific to sports-related expenditures, and you can now also claim for subscriptions to digital newspapers.

3. Income tax will be reduced by 1% for those earning between RM50,000 to RM70,000 per year

Info sourced from LHDN.

Image via SAYS (YouTube)

4. For those who have lost their jobs due to COVID-19, the income tax exemption limit has increased to RM20,000*

*For each full year of service, for two years.

Info sourced from LHDN.

Image via SAYS (YouTube)

5. You can claim up to RM8,000 if you or any of your family members undergo medical treatment for serious illnesses

Info sourced from LHDN.

Image via SAYS (YouTube)

There's also an additional RM8,000 of tax relief on medical treatment, special needs, and parental care, as well as a RM1,000 tax exemption for a full medical check-up.

Now, when income tax filing opens in March 2021, you should be all prepared to maximise your income tax refund. Just remember to keep all your receipts as proof!

Image via SAYS (YouTube)

To open a new or add-on an additional SSPN account, you can register online here or go to any PTPTN office.

By depositing any amount of money into SSPN-i Plus before 31 December 2020, you'll also stand a chance of winning awesome prizes such as a Mercedes-Benz C200, or cash prizes worth RM1 million, in Cabutan WOW! SSPN-i Plus 2020!

Image via PTPTN

Click here for more information.

Never filed your income tax before? Here's a handy guide:

Check out our other #lifestyle stories: