Earned Income Relief is for individuals who are gainfully employed or carrying on a trade, business, profession or vocation.
On this page:
Qualifying for relief
You will receive Earned Income Relief if you have taxable earned income from any of the following sources in the previous year:
Amount of relief
The amount of Earned Income Relief is based on your age and taxable earned income (less any allowable expenses) in the previous year.
Your age as of 31 Dec of the previous year | *Maximum amount claimable |
|---|---|
Below 55 | $1,000 |
55 to 59 | $6,000 |
60 and above | $8,000 |
* If the amount of taxable earned income is lower than the maximum amount claimable, the relief will be capped at the amount of taxable earned income.
For example, if you are 55 years old as at 31 Dec 2024 and have taxable earned income of $5,000 in 2024, you will get Earned Income Relief of $5,000 (instead of $6,000) for the Year of Assessment 2025.
Earned Income Relief for persons with disability
A higher Earned Income Relief (shown in the table below) will be given to those with permanent *physical disability or ^mental impairment that severely affects their ability to work.
* Physical disability - requires assistance in any one of the following 6 Activities of Daily Living (ADLs): (1) Washing or Bathing, (2) Dressing, (3) Feeding, (4) Toileting, (5) Transferring and (6) Mobility.
^ Mental impairment - impaired in any one of the following 3 areas of activities: (1) Self Care and Activities of Daily Living, (2) Compliance to Psychiatric Treatment and (3) Education or Work.
| Your age as of 31 Dec of the previous year | **Maximum amount claimable |
|---|---|
| Below 55 | $4,000 |
| 55 to 59 | $10,000 |
| 60 and above | $12,000 |
** If the amount of taxable earned income is lower than the maximum amount claimable, the relief will be restricted to the amount of taxable earned income.
How to claim
You do not need to claim Earned Income Relief in your Income Tax Return as it will be automatically granted to you based on your eligibility.
First-time claim for Earned Income Relief (Disability)
If you are claiming Earned Income Relief (Disability) for the first time, please upload/attach the following documents during the e-Filing/filing of your Income Tax Return:
- Completed Application for Claim of Disability - Related Tax Reliefs (DOC, 413KB); or
- Letter/supporting documents from the disability association indicating the disability details and commencement date; or
- Medical report or doctor’s certification, indicating the disability details and commencement date.
You also need to complete your Income Tax Return as follows:
- If you are e-Filing your Income Tax Return: Enter the details of your disability under Section “4. Deductions, Tax Reliefs and Rebates” > “Earned Income Relief”.
- If you are submitting a paper Income Tax Return: Enter the details of your disability in Appendix 2 of the Income Tax Form.
We will automatically grant you Earned Income Relief (Disability) in subsequent years if you are eligible. You do not need to enter the claim in your Income Tax Return in subsequent years.
FAQs
I have filed my Income Tax Return but have yet to receive my tax bill for the current Year of Assessment. This is my first time claiming Earned Income Relief (Disability). What should I do if I have forgotten to claim the relief?
1. If you e-Filed your Income Tax Return
You may re-file once by 18 Apr. When you re-file, you must upload the completed Application for Claim of Disability - Related Tax Reliefs (DOC, 413KB) and include all your income details, expenses, donations and relief claims, where applicable. Once you have re-filed successfully, your new submission will override the previous submission.
2. If you filed a paper Income Tax Return or are unable to re-file online
Please file an amendment upon receiving your Tax Bill for the current Year of Assessment. You may file the amendment via the 'Amend Tax Bill' digital service at myTax Portal within 30 days from the date of your Income Tax bill.