Mr and Mrs Lim have two children. Their first child is physically handicapped. Mr Lim has claimed Handicapped Child Relief (HCR) for the first child and Qualifying Child Relief (QCR) for the second child. Mrs Lim earned an income of $250,000 in 2020.
Apart from Earned Income Relief of $1,000 and WMCR, Mrs Lim is not claiming any other personal reliefs for the YA 2021.
Mrs Lim's WMCR claim:
Child Order | % of Mrs Lim's earned income [A] | Amount ($) [A] x Mrs Lim's earned income $250,000 | QCR/ HCR claimed by Mr Lim ($) | WMCR claimed by Mrs Lim ($) | Cumulative WMCR claimed by Mrs Lim ($) |
---|
1st | 15 | 37,500 | 7,500 | 37,500 | 37,500
|
2nd | 20 | 50,000 | 4,000 | 46,000* | 37,500 + 46,000 = 83,500 |
Total Personal Reliefs claimed by Mrs Lim: $80,000#
* The total amount of QCR / HCR and WMCR is subject to a cap of $50,000 per child.
# The total amount of Mrs Lim's personal income tax reliefs is capped at $80,000.