Are you under claiming your insurance tax relief?
After all, tax planning is part of financial planning.
Digest these 2 facts
- Your EPF contribution alone would have maxed out the RM 6,000 quota for EPF & Life insurance tax relief
- 60% of Medical/Life insurance premium is claimable under medical insurance tax relief of maximum RM 3,000
So how do you know which one is which and how much is this 60%?
FYI, there are 4 types of insurance which qualify for tax relief.
The easy way to do this is to look at your annual statements. Even easier, you could register for e-Connect to view your statement online at your convenience.
After you login, you go to ….. Statement > Life > Statement of Life Assurance Premium Paid
Here’s a snapshot of my whole life policy statement with 36 Critical Illness rider. With this, it falls under the category “Medical/Life” policy.
Since you probably have maxed out on the RM 6,000 life insurance + EPF quota, you can actually take 60% of your life insurance premium here (represented by A) and fill in the quota for medical insurance tax relief of RM 3,000.
*Of course, your hospitalization (medical card) policy would still entitle you for 100% premium of the medical insurance tax relief
Unfortunately, I have submitted my income tax return form 2 weeks ago. But I’ll definitely be smarter next year.
After all, every buck saved is a buck earned.
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