5th December 2018 - 5 min read
Why are we talking about income tax relief for 2017 when many are still struggling to complete their 2016 income tax filing you ask? That’s because it’s better to take advantage of the tax relief as early as possible so you can save more money on your next income tax filing!
Besides, what with the newly introduced tax reliefs (which include lifestyle, breastfeeding equipment, and child care centre or kindergarten fees), it’s now more important to keep all your receipts than ever. Here are all the things that you can claim for your income tax relief in 2017, so start spending on these and don’t forget to keep the receipts and proof of purchases!
Deductible Amount: RM3,000
Many overlook the importance of having a medical insurance and instead prefer to depend on their company’s group insurance instead.The problem with employee benefits group insurance is that the coverage is often low and subject to annual limits. Besides, you’ll be completely vulnerable if you or your company decide to end your employment, so isn’t it safer for you to have your own medical insurance policy?
If you are a parent with young children, consider taking out an education insurance policy for each of them for their future education. It’s specifically tailored to be your savings tool to help fund your child’s higher education expenses once they enter a college or university.
After all, you get an income tax relief of RM3,000 for medical insurance as well as education insurance premiums, so make full use of it and get yourself and your children insured! If you’re not sure where to start, head to our medical insurance comparison page for a comprehensive list of the available medical insurance in the market.
Deductible Amount: RM2,500
Sure, it doesn’t look like much, but the new lifestyle tax relief allows you to claim on items that were not covered previously, which include broadband, gym membership, as well as smartphones and tablets! What’s more, you get to claim for these on a yearly basis. Now is the best time for you to get that smartphone or tablet that you’ve always wanted! Here’s a list of the things that can be claimed under the lifestyle tax relief:
Deductible Amount: RM6,000
Malaysians are woefully underinsured, that’s a sad fact that many are unaware of. With the income tax relief of RM6,000 (which is combined with your EPF income tax relief), you no longer have to hesitate about purchasing a life insurance policy. It’s an important financial tool that will prove valuable at times of need; such as providing some financial relief to your family members after your death or in the event of a disability.
There are plenty of affordable life or term life insurance policies to suit any budget. Don’t believe us? Take a look at our comprehensive list of the available term life insurance policies in the market and get your quote now!
Deductible Amount: RM6,000
Supporting equipment for the disabled are often expensive, not to mention few and far between. One way to make it more affordable is by buying secondhand supporting equipment on websites like Mudah.my or Lazada.
Fortunately, to ease your financial burden, the government offers an income tax relief of RM6,000, which is also extended to a disabled spouse, child, or parent.
Deductible Amount: RM500
Not everyone is willing to fork out their precious money for a medical examination, but one way or the other we all need to get medical checks in our life. It could be for your work purpose (some companies require their employees to go for annual medical check-ups or before starting a particular position) or to qualify for an insurance policy.
Whatever the reason, it’s always good to be on top of your health via medical check-ups. As the saying goes, ‘prevention is better than cure’, so make use of the RM500 medical examination tax relief and get yourself checked a soon as you can!
Deductible Amount: RM1,000
New moms rejoice! Starting from 2017 onward, new mothers (who are taxpayers) with children of up to 2 years old can get a tax relief of up to RM1,000 for breastfeeding equipment every 2 years. Breastfeeding equipment can be on the pricey side, and mothers should only use the good ones to maintain the quality of their milk for longer storage and convenience.
With the new tax relief, you no longer have to worry about buying the better (and more expensive) breastfeeding equipment for your bundle of joy.
Deductible Amount: RM1,000
If you’re struggling with your young children’s child care and kindergarten fees, your finances can now have more breathing room with the new income tax relief of up to RM1,000 especially for that purpose. The tax relief is aimed to ease the burden of parents with children of up to 6 years old, and can be claimed by either parent of the children starting from.
We’ve listed seven of the things you can spend more to save on your 2017 income tax, but of course, there are plenty more things listed on the 2017 income tax relief, which you can view here.
What are the income tax reliefs that you can make the most of in 2017? Do you have any plans on how you can save on tax? Share your thoughts and ideas with us in the comment section below!
Subscribe to our exclusive weekly newsletter and we’ll bring you the week’s highlights of financial news, expert tips, guides, and the latest credit card and e-wallet deals.
Stay tuned for what’s to come next in the personal finance world