Qualifying/handicapped child relief

'Qualifying child relief (QCR)/ handicapped child relief (HCR)' is a relief given in recognition of families' efforts in supporting their children and caring for handicapped children.

Features

• Each qualifying child is only eligible for either QCR or HCR.
• QCR/ HCR may be shared with your spouse based on the apportionment agreed by both parties

Qualifying criteria

For qualifying Child Relief (QCR)

The qualifying child must – 

• Be unmarried; and
• Be a legitimate child, step child or legally adopted child; and
• Be below 16 years old or studying full-time at any university, college or other educational institution; and
• Does not have an annual income (e.g. salary, NS pay and tax exempt income such as bank interest, dividend and pension. However, scholarship and similar allowances are excluded) exceeding $2,000 in the previous year.

With effect from Year of Assessment (YA) 2010 onwards, the income threshold has increased from $2,000 to $4,000^NEW!.

You cannot claim QCR on the same child if you are claiming or have claimed HCR in the same year of assessment.

If you are a working mother and satisfied all conditions under working mother's child relief (WMCR), you may claim this relief and WMCR on the same child.

For handicapped child relief (HCR)

The qualifying child must – 

• Be unmarried; and
• Be a legitimate child, step child or legally adopted child;
• Be mentally or physically handicapped, and
• Does not have an annual income (e.g. salary, NS pay and tax exempt income such as bank interest, dividend and pension. However, scholarship and similar allowances are excluded) exceeding $2,000 in the previous year.

With effect from YA 2010 onwards, the income threshold condition has been removed^NEW!.

You cannot claim HCR on the same child if you are claiming or have already claimed QCR in the same year of assessment.

If you are a working mother and satisfied all conditions under working mother's child relief (WMCR), you may claim this relief and WMCR on the same child.

How much you can claim

With effect from Year of Assessment (YA) 2009 onwards, the quantum for QCR and HCR has increased to $4,000 and $5,500 respectively. QCR is now extended to all qualifying children. In addition, the maximum claim allowable for QCR/ HCR and WMCR has doubled from $25,000 to $50,000 per child.  

*QCR/ HCR, regardless of whether it is claimed by the father or mother, will be allowed first and WMCR will be limited to the remaining balance.

How to determine ranking of children

The order of the children is based on:

• Date of birth; or
• Date of legal adoption

A deceased child is taken into account in determining the ranking of children, but not a stillborn child (a child for whom no birth certificate has been issued).

How to claim

You need to enter your details of your claim under 'child relief' in your tax form.

If you are claiming QCR or HCR only

Please enter claim type 'Q' for qualifying child relief or 'H' for handicapped child relief, amount for QCR or HCR and 'No' under claim WMCR.

If you are claiming QCR or HCR + WMCR 

Please enter claim type 'Q' for qualifying child relief or 'H' for handicapped child relief and 'YES' under claim WMCR.

You only need to enter amount for QCR or HCR. Please do not include amount for WMCR as we will automatically compute the allowable amount for WMCR based on your eligibility, when we process your tax form.

If you are claiming for the first-time

• If you submit paper Income Tax Return, please enter your child's particulars and/or details of handicap in Appendix 2 of your tax return and submit together with your tax return.
• If you e-File your tax return, you need to click on the 'HERE' button under '9. Child' on 'Deductions and Reliefs' page to enter your child's particulars and/or details of handicap.

Find out more about how to submit your tax return.