Earned Income Relief is for individuals who are gainfully employed or carrying on a (trade, business, profession or vocation).
Find out more on:
Who can claim
You will get this relief if you have income from any of the following sources in the previous year:
How much you can claim
The amount of relief is based on your taxable earned income* in the previous year, up to the maximum amount shown below.
| Your age as at 31 Dec of the previous year |
Year of Assessment 2012 and before |
Year of Assessment 2013 onwards New! |
Below 55
|
$1,000
|
$1,000
|
55 to 59
|
$3,000
|
$6,000
|
60 and above
|
$4,000
|
$8,000
|
*Earned income = Taxable earned income from employment, pension, trade, business, profession or vocation less allowable expenses
Example: If you are 55 years old as at 31 Dec 2012 and earned income in 2012, you will get Earned Income Relief of $6,000 or the amount of earned income, whichever is less, for the Year of Assessment 2013.
If you are handicapped
If your physical or mental disability permanently and severely affects your ability to work, your Earned Income Relief will be given based on the amount of your taxable earned income* in the previous year, up to the maximum shown below.
| Your age as at 31 Dec of the previous year |
Year of Assessment 2012 and before |
Year of Assessment 2013 onwards New! |
Below 55
|
$2,000
|
$4,000
|
55 to 59
|
$5,000
|
$10,000
|
60 and above
|
$6,000
|
$12,000
|
*Earned income = Taxable earned income from employment, pension, trade, business, profession or vocation less allowable expenses
How to claim
You do not need to claim Earned Income Relief. If you are eligible, we will automatically grant this relief to you when we process your tax return.
If you are claiming Handicapped Earned Income Relief for the first-time
You need to complete and submit the Handicapped-Related Tax Relief form (204KB) by email, fax or post.
You would also need to complete your tax return as follows:
- If you submit paper Form B or B1: enter details of your handicap in Appendix 2 of Form B or B1 and submit together with your Form B or B1.
- If you file your tax return online: enter details of your handicap under item 7 Earned Income Relief on the Deductions and Reliefs page.
We will automatically grant you Handicapped Earned Income Relief for handicapped in subsequent years. You do not need to enter your claim in your tax return in subsequent years.
FAQ
Q1. I have filed my tax return for the Year of Assessment (YA) 2013. This is my first time claiming Handicapped Earned Income Relief. What should I do if I have forgotten to claim the relief?
You would need to complete and submit the Handicapped-Related Tax Relief form (204KB) by email, fax or post. In addition, you may amend your filing as follows:
(a) If you have filed your tax return online
You may re-file within 14 days of your previous submission or by 18 Apr 2013, whichever is the earlier. You can only re-file once.
When you re-file, you must include all your income details and expenses, donations and relief claims, where applicable. Once you have re-filed successfully, your new submission will override the previous submission.
If you could not re-file, please write to us by email, fax or post, stating your request to claim or revise the relief for YA 2013.
(b) If you have filed a paper tax return
Please write to us by email, fax or post, stating your request to claim or revise the relief for YA 2013.