Hello Grasshoppa,
2020 is coming to an end & this year has been a roller coaster ride for all of us with the change of government & global pandemic situation. There is nothing much we can control on this but one thing we can control is ourself & our emotions. Despite the uncertainties, we must always stay positive. Recently I had a conversation with a friend of mine on general investment and ways to maximise our investment portfolio with our current income. Each year, all of us will be paying a certain amount of income tax to the government & our government will usually give us tax relief for a deduction based on our lifestyle, spending & income.
As We Are Approaching 2021, What Are The Last Minute Ways To Maximize Our 2020 Income Tax Relief?
1. Special Tax Relief for Tablet, Smartphone, Laptop & PC (RM2,500)
Looking for a reason to buy the latest gadgets? This is a perfect time for you! You can claim up to a maximum of RM2,500 of your total spending transacted between 1st June 2020-31st December 2020.
2. Domestic Travelling (RM1,000)
I am sure you have had your “Cuti-Cuti Malaysia” recently. If you don’t, you should start planning for a staycation nearby to pamper yourself & your loved ones.
3. Private Retirement Scheme (RM3,000)
Most of you may have invested RM250 each month to achieve a total of RM3000 per annum. If you don’t, you can maximise it by investing a total of RM3000 for your PRS account. If you don’t have any PRS account, you can learn more from my past article on PRS.
4. Medical Check-Up (RM500)
It is important to do an annual health check to ensure you understand your body condition & health. You can utilise up to RM500 for your income tax relief.
5. Lifestyle Expenses (RM2,500)
This applies to books, gym membership, sports equipment, internet bill & electronic device as per item 1. If you are underutilizing this, it is time to renew your gym membership, buy any sports equipment or shop for your favourite book.
Conclusion :
You may be thinking about why should you spend more on these expenses while you can utilise some of the expenses for cash savings. I agree on that but maximizing our income tax relief will also help us to claim back some of our income tax contributions. I’ve been tracking on ways to maximise my personal finance over the years & I often discover that many people actually underutilise their tax relief. It is our benefit as a Malaysian for each tax relief & those expenses are claimable once we file our income tax in 2021. Therefore I hope you can start exploring it to ensure you maximise your tax relief.
OSS!
