Up to $12,000 will be received by eligible working mothers for the Tax Relief 2023. Adhering to the announcement, mothers with children expected to be born or adopted in 2024 are qualified.On February 14, Lawrence Wong, a Deputy Prime Minister and Finance Minister, introduced adjustments to the Tax Relief 2023 during his announcement of this year’s budget. The adjustments include allowing working mothers to receive a fixed amount of tax relief for the children they expect to be born or adopted in 2024. They will be able to receive $8,000 for the first child born or adopted on or after January 1, 2024. The amount will increase to $10,000 for the second child and $12,000 for the third child and subsequent children.
According to Ryan J, in contrast to the current structure, the tax relief depends on a percentage of the recipient’s income. To date, the amount the working mothers can receive is 15% for the first child, 20% for the second, and 25% for the third and subsequent children. The adjustment means that working mothers who earn high incomes may receive a lower amount for the tax relief. However, those who earn low incomes may experience an increase in what they will receive. Unfortunately, single mothers are not eligible to claim this tax relief.
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Tax Relief 2023 on Foreign Domestic Workers
According to Lim, the tax relief imposed on foreign domestic workers is allowed to lapse from the year of assessment in 2025. This lapse is applied to the income to be earned in 2024. In addition, Wong stated that the government has introduced an adjustment to the tax relief that will provide more financial assistance to the families that need help in taking care of their dependents. In a press release, a strategy group under the Prime Minister’s Office, the National Population and Talent Division stated that there would be no change to the levy concession.
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