Friday, December 19, 2008

How To Maximize Your Personal Income Tax Savings?

Few days ago, I received an email from a good friend, Jamie on Tax Reliefs for individual. She's in financial industry and 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 in my Money Magnet.

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

1. RM1,000 for purchasing books, magazine, journal (except newspaper). If you don't read books then buy them as gift for others.
$$$Now I have a good reason to subscript to Personal Money magazine and buy more books on financial literacy. Oh! Also, can consider buying books for loved ones - refer to my previous post on Affordable, Meaningful and Healthy Christmas Gift Ideas.$$$

2. RM3,000 for computer purchase for every 3 years only.
$$$Great, PC with Internet is a MUST. Hope that Inland Revenue Board (IRB) will soon extend to provide relief for Internet Service Providers (ISPs) subscription fees.$$$

3. RM300 for purchase of sports and exercise equipment such as all types of racquets and balls, treadmill, exercise bike and airwalker.
$$$Not applicable to me at the moment coz my exercise is jogging and swimming. Perhaps can consider treadmill or airwalker in the future.$$$

4. RM6,000 for both EPF & life insurance.
$$$I just calculated mine. It's already over than RM6K. No, not because of my EPF, but because of my insurance ;p For those of you who has not purchase any life insurance plan yet, it's a right financial move especially if you're the breadwinner for your family.$$$

5. RM3,000 for education & medical insurance.
$$$Hmm... my medical insurance is linked with my life insurance. I will find out if I can transfer the medical insurance from item 4. Then, I can have more relief.$$$

6. RM5,000 for medical checkup (RM500 max) & medical expenses to treat serious illness/disease for you, your spouse or kids. Both combined, limits to RM5,000.
$$$Have you go for your medical checkup? If not yet, you better call up the wellness centre at your nearby medical practitioner. My advice is get a professional one. I've done mine, only in last month.$$$

7. RM5,000 for parents medical expenses includes (treatment, nursing & dental - subject to terms & condition).
$$$Next time, I must remember to get the receipt from my parents' medical practitioner.$$$

8. RM5,000 for personal education (there is a limitation on type of education tho). Go upgrade yourself. Take advantage by paying the fees by 2008.
$$$Maybe I save this one for 2009. It has been quite a long time since my last assignment.$$$

Jamie, thank you for sharing the tax saving ideas with us. It's now less than 2 weeks before 2009. Let's us maximize our tax saving for 2008. Anyway, if time is a constraint, we can always plan ahead for our tax savings in 2009.
P/S: $$$These are my personal comments.$$$

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