10 TIPS TO SAVE YOU MONEY

IT is tax time again.
You have until 15 Apr to file your tax form or until 18 Apr if you e-file.
The Inland Revenue Authority of Singapore (Iras) expects that 85 per cent of the 1.5 million taxpayers will e-file this year, up from 80 per cent last year.
Most employers are in the auto-inclusion scheme. That means you can view your employment income at https://mytax.iras.gov.sg, check that the information is correct, and click 'submit' to file your tax return. It's easy.
Here are 10 more tips to help you save money on taxes.

Tip 1: You have no tax to pay - if you earned less than $22,000 last year.
If you receive a tax form or PIN mailer, however, you are required to submit your tax return to Iras regardless of your income.
To check if you need to file a tax return, send an SMS message with your IC number to 91164900 using this format: Filetax S1234567Z.

Tip 2: Paying through Giro
About 60 per cent of taxpayers pay through Giro.
It allows you to make up to 12 months of interest-free instalments, from May 2008 to April 2009.
Otherwise, you have to pay within one month of receiving your tax bill.
You can download the Giro application form at www.iras.gov.sg.
Tip 3: Wife Relief

If your wife was not working or earned less than $2,000 in 2007, you can claim 'wife relief' of $2,000.
There is no corresponding 'husband relief' in the case of a non-working husband.

Tip 4: Qualifying Child Relief
QCR is $2,000 per child for the first three children. Either parent may claim the full amount or it may be split between both parents.

Tip 5: Working Mother Child Relief
For first, second, third and fourth children, the relief is 5, 15, 20 and 25 per cent of a working mother's wages.
Both this and the QCR can be claimed for Singaporean children up to 16 years old, or above age 16 if a full-time student with income less than $2,000 in 2007, excluding scholarships.

Tip 6: Parenthood Tax Rebate
This is $10,000 for your second child and $20,000 each for your third and fourth children born in 2004 or later. The rebate may be split between the parents in any way they choose.
This one is huge since it is a rebate, which you deduct directly from your taxes. It reduces taxes more than a relief, which is subtracted from your income.

Tip 7: Parent Relief
You can claim parent relief of $5,000 if your parent is staying with you and $3,500 if not.
The parent must be 55 years or older, live in Singapore and earned less than $2,000 in 2007. You can claim for up to two parents.

Tip 8: Foreign Maid Levy
A working mother may claim this relief even if the husband paid the levy. It is twice the amount of levy paid. So the maximum you can claim is $4,440 if you qualify for the concessionary levy of $170 per month with effect from 1 Jul 2007, and $6,720 if you don't.

Tip 9: Grandparent Caregiver Relief
Are you a working mother with Singaporean children aged 12 or younger in 2007?
Then you can get a relief of $3,000 for one (only one) of your parents or in-laws who help to look after your children. They must be living in Singapore and not working in 2007.

Tip 10: One-off 20 per cent rebate
As announced in this year's budget, resident taxpayers will receive a one-off personal tax rebate of 20 per cent, up to a maximum of $2,000.
This rebate is automatically included by Iras, so you need not declare it in your tax form.
-By
Larry Haverkamp
Mon, Mar 24, 2008 The New Paper