My Personal Tax Relief for YA 2018 • The Money Magnet

Pen and calculator with wording My personal tax relief 2018

For this post, I am going to share my estimated personal tax relief for Year of Assessment (YA) 2018.

As I shared earlier, I temporarily left my full-time employment in July 2018 to spend more time with my toddler.

So, this decision does somehow affected my personal tax relief for YA 2018.

Nevertheless, I take it positively and am still able to make the most out of my tax relief for YA 2018.

My estimated 2018 personal tax relief

For the Year of Assessment 2018, the personal tax relief below is applicable to me.

Before we move on further, do take note the amount shared below is just an estimated figure.

Actually, I had been working on my income tax assessment since November 2018, including an estimation of my personal tax relief.

I shall update with the actual figure once I submit my income tax for the assessment year 2018 that is latest by 30 April 2019.

1. Self and Dependent

For the Self and Dependent category, I am entitled to the full personal tax relief of RM9000.

Basically, it is RM780 per month.

Self and Dependent tax relief of RM9000 seems to be no longer sufficient

I am wondering if LHDN is going to increase the tax relief for Self and Dependent because the RM9000 is no longer sufficient.

Subtotal: RM9,000

2. Lifestyle

Under the Lifestyle category, I am eligible to claim up to RM2500. But, I am only able to claim for the below:

Purchase of books for my toddler: RM15.85

My internet subscription charges: RM1,110

Actually, I bought more books for my toddler but somehow I misplaced the official receipts.

And I only managed to find the official receipt for RM15.85.

Thus, that is the only amount I am able to claim. Because I know how serious is LHDN with the official receipt as proof of purchase.

Subtotal: RM1125.85

3. Childcare fees to a Child Care Centre or a Kindergarten

From July 2018 onwards, I started sending my toddler to a playschool near to my home.

So, either I or my husband is eligible to claim for the maximum of RM1,000 childcare fees tax relief.

Child care fee tax relief of RM1,000 seems to be not sufficient too

In fact, in my opinion, the RM1,000 is not sufficient. Because nowadays childcare fees can easily reach RM500 per month.

I am hoping our government will consider increasing the childcare tax relief to reduce the peoples’ financial burden.

Subtotal: RM1,000

4. Ordinary Child Relief

As for the Ordinary Child Relief category, I am also entitled to claim for the RM2,000 ordinary child relief.

Again, either I or my husband can claim for the RM2,000 Ordinary Child Relief.

We can opt to claim RM2,000 for either one of us or to claim separately RM1,000 for each of us.

Most probably I will be the one claiming the RM2,000 tax relief.

Subtotal: RM2000

5. Life Insurance and EPF

Sample of life premium for income tax relief. — A sample of my life insurance tax relief

For this category, I am entitled to a maximum of RM6,000 tax relief.

Actually, my life insurance and EPF contribution for 2018 is exceeding RM,6000.

Well, at least I got to enjoy some tax relief for paying my monthly life insurance premium.

Subtotal: RM6,000

6. Deferred Annuity and Private Retirement Scheme (PRS)

For PRS, the government is giving an incentive of tax relief to RM3,000.

This incentive is for 10 years, from year assessment 2012 until year assessment 2021.

PRS tax relief is up to a maximum of RM3,000

So, I am eligible for the RM3,000 tax relief under the PRS category.

But, for 2018, upon some calculation made earlier to maximize my tax relief, I decided not to contribute my PRS.

Subtotal: RM0

7. Insurance Premium for Education or Medical Benefit

Aside from the life insurance premium for item 5 above, I am also entitled to a maximum of RM3,000 tax relief on medical benefits.

Sample of income tax relief statement for medical premium.

Do not get confused between life insurance and medical tax relief

Do take note not to get confused between the life insurance premium and medical insurance premium. To avoid any issue, I always refer to the notice from my insurance companies.

Sample as shown above.

The notice stated clearly the premium paid for both life insurance and/or medical premium.

Subtotal: RM2,125

With effective from the assessment year 2016, LHDN started to have tax relief up to RM250 for contribution to SOCSO.

Because I left my full-time employment in July 2018, my contribution to SOCSO is only about RM110 for the year 2018.

But, it does still play a role in my 2018 personal tax relief.

Subtotal: RM110

Read more: How to check SOCSO or PERKESO number?

Summary of my personal tax relief for YA 2018

Based on the above, the summary of my personal tax relief for YA 2018 is as below:

Self and Dependent: RM9,000

Lifestyle: RM1,125.85
Childcare fees to a Child Care Centre or a Kindergarten: ~~RM1000~~
Ordinary Child relief: ~~RM2000~~

Life insurance dan EPF: RM6,000
Deferred Annuity and Private Retirement Scheme (PRS): RM0
Insurance premium for education or medical: RM2,125

Contribution to the Social Security Organization (SOCSO): RM110

My estimated tax relief for YA 2018 is ~~RM21,460.85~~ RM18,360.85.

So, the estimated total amount of my personal tax relief for YA 2018 is ~~RM21,460.85~~ RM18,360.85

The total tax relief is slightly less than my tax relief for the assessment year 2017 which was RM24,335.

The difference was mainly due to I reduced my PRS contribution in 2018 compared to the year 2017. And also I let my husband claim for ordinary child relief.

Final thought

From the above estimation, it seems like I have already maximized my personal tax relief for YA 2018.

I believe we all also wish to fully utilize LHDN personal tax relief.

Well, this is the legal way to claim whatever we are allowed to claim to have more ringgit under our names.

Remember to keep a copy of all receipt for future reference

Above all, do remember to keep a copy of all receipts for future reference. Because LHDN has the full right to ask for the original copy of the receipts.

Hopefully, my sharing above is beneficial to those planning to file their income tax for the assessment year 2018.

How about you? Have you estimated your tax relief for the assessment year 2018? Feel free to comment below.

Lastly, for sharing purposes, the full listing of Malaysia Personal Income Tax Relief is now available on the IRB website.

Updates on 30 April 2019

As for childcare fees and ordinary child relief, I decided to let my husband claim for the tax relief. Simply because my taxable income is reduced for YA 2018 due to I left my full-time employment in the middle of 2018.

Also, these can help him to maximize his tax relief.

Image Credits

First image from Canva
All screenshots taken by author