How i saved ~$600 on TAXES✌️💰

It’s TAXES season y’all💰😬 I haven’t been sharing as many #Adulting101 posts as i would like so i’m glad to do one today☺️

If you’re new to paying your personal taxes, there are a few standard ways to decrease the taxes you need to pay, through decreasing your assessable income! Things like donating to charities, topping up your CPF SA/SRS, having a child etc would all reduce your assessable income. Just do a quick google to find out the full list!

For me, there are 2 things i did to reduce my 2022 taxes:

1) Checking my personal tax statement

This is quite ‘duh’ but you’ll be surprised at how many people don’t check their billed taxes and just pay them! Which is a major no no because the government/IRAS does not have all the information sometimes to bill you the correct taxes to pay. For example, I qualify for the “parents support” relief, which means i get $9000 deducted from my assessable income but my billed taxes didn’t take this into account.

Just by appealing to IRAS and confirming that i indeed qualify for this, i saved $300+ on my taxes!

2) Topping up my CPF SA/SRS

Doing either of this would reduce your assessable income. If you topup your SA, you’ll be getting the 4% interest p.a whereas if you topup your SRS, it is suggested to invest the money in the SRS account after that so it’s not lost to inflation (which is what i did). So the question is, would anyone want to topup their SA/SRS and let their money be stuck inside for years? Because it’s one way to build a retirement fund and get stable interest on that fund! AND you get to pay less taxes! I saved ~$200+ from topping up my SRS in 2022.

Hope this post is helpful! Adulting is tough but we got this🫶

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