How to Maximize Your 2008 Income Tax Reliefs?

On the second week of December 2008, I received an email from a good friend on 2008 Income Tax Reliefs for the individual residing in Malaysia.

She is in the financial industry, occasionally she’ll email me some financial articles, which I find very interesting.

I am glad that she gave me the green light to share the content of the email with my readers.

This post is on how to maximize 2008 Income Tax Reliefs for individuals residing in Malaysia.

8 simple and practical ways to maximize your 2008 income tax reliefs

Here are the 8 simple and practical last minutes action to maximize your 2008 income tax reliefs:

1. RM1,000 for purchasing books, magazine, journal (except newspaper)

If you don’t read books then buy them as a gift for others.

So, now I have a good reason to subscript to Personal Money magazine and buy more books on financial literacy.

2. RM3,000 for computer purchase for every 3 years only

This is great. Because nowadays, personal computer with the Internet is a must.

So, hope that the Inland Revenue Board (IRB) will soon extend to provide relief for Internet Service Providers (ISPs) subscription fees.

3. RM300 for purchase of sports and exercise equipment

Some examples of sports and exercise equipment are all types of racquets and balls, treadmill, exercise bike and air walker.

Currently, this is not applicable to me at the moment because my exercise is jogging and swimming. Perhaps can consider a treadmill or an air walker in the future.

4. RM6,000 for both EPF and life insurance

Upon reading this, I had just calculated mine. For this category, it’s already over RM6,000.

No, not because of my EPF. But because of my life insurance.

So, for those of you who haven’t purchase any life insurance plan yet, it is the right financial move.

Especially if you’re the breadwinner for your family.

5. RM3,000 for education and medical insurance

At the present time, my medical insurance is linked with my life insurance.

I will find out if I can transfer the medical insurance from item 4. Then, I can have more savings.

6. RM5,000 for a medical checkup and medical expenses

This means an RM500 maximum for a medical check-up. Followed by medical expenses to treat serious illness and disease for you, your spouse or your kids.

Both combined, limits to RM5,000.

Have you gone for your medical checkup?

If not yet, you better call up the wellness centre at your nearby medical practitioner.

My advice is to get a professional one. I’ve done mine, only last month.

7. RM5,000 for parents medical expenses

This includes treatment, nursing and dental but is subject to terms and conditions.

Previously, I didn’t keep the receipt for medical expenses I paid for my parents.

So, the next time, I must remember to get the receipt from my parents’ medical practitioner.

8. RM5,000 for personal education

But, there is a limitation on the type of education though. Go upgrade yourself. Take advantage of paying the fees by 2008.

Lastly, for this category, I will save it for 2009. It has been quite a long time since my last assignment.

Final thoughts

Thank you to my friend for sharing the income tax reliefs with us.

Let’s maximize our tax savings for 2008.

Anyway, if time is a constraint, we can always plan ahead for our tax savings in 2009.