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Everything you need to know on the Child Relief/Handicapped Child Relief

Everything you need to know on the Child Relief/Handicapped Child Relief

Last Updated on September 26, 2022 by Parentology

Qualifying Child Relief (QCR) and Handicapped Child Relief (HCR) are given to parents to recognise their efforts in supporting their children. Being eligible allows you and your spouse to claim tax relief of $4,000 per child under QCR, or $7,500 per child under HCR.

In this article, we will walk you through the qualifications you need to receive QCR and HCR, as well as supporting examples to get a better understanding.

 

How do you qualify for the QCR/ HCR?

To be able to claim for the QCR/ HCR, you will need to be a parent caring for an unmarried child that satisfies all the conditions below in 2021:

  Qualifying Conditions Eligible for QCR Eligible for HCR
1 Your child:
  • was born to you and your spouse/ex-spouse, or
  • is a stepchild, or
  • is legally adopted.
Yes Yes
2 Your child was:
  • below 16 years old; or
  • studying full-time at any university, college, or other educational institution at any time in the year.
Yes N. A
3 Your child did not have an annual income* exceeding $4,000.

* Includes allowances and salaries from National Service, internship, school attachment, and part-time employment. It does not include scholarships, bursaries, and similar allowances.

Yes N. A
4 Your child is mentally or physically handicapped. N. A Yes

Source: IRAS

 

If your child is above 16 years old and received an annual income exceeding $4,000

Bernice, Mr. Tan’s daughter was 18 years old and a full-time student in 2021. From February to May 2021, she did part-time work and earned an employment income of $5,000 during that period.

Child Relief/Handicapped Child Relief
Source: IRAS

 

Mr. Tan will not be eligible to claim for QCR in respect of Bernice in Year of Assessment 2022 since her income for 2021 exceeded $4,000.

 

If your child has completed National Service (NS) and started full-time studies

Andy, Mr., and Mrs. Koh’s son completed his NS in March 2021 and started his full-time university studies in July 2021. Andy’s NS allowance was $3,000 and he did not receive any other income streams in 2021.

completed National Service (NS) and started full-time studies QCR
source: IRAS

 

Mr. and Mrs. Koh can claim for QCR in the Year of Assessment 2022 as Andy was studying full-time in 2021 and did not have an annual income exceeding $4,000.

 

Determining child order

The amount of QCR/ HCR depends on the child’s order in the family unit. In the event of any deceased sibling or a stillborn child, IRAS will consider them to determine the order of children.

The order of your child in the family unit is based on:

For a child born to you and your spouse/ex-spouse Date of birth shown in your child’s birth certificate
For a child born to you and your spouse/ex-spouse before you are married to your spouse/ex-spouse Date of marriage
For a stepchild Date of birth shown in your child’s birth certificate
For a legally adopted child Date of legal adoption as shown in the adoption papers

Source: IRAS

 

Amount of relief

To understand how much rebate you are eligible for, here is a table for a better understanding:

Qualifying Child Relief (QCR) Handicapped Child Relief (HCR)
$4,000 per child $7,500 per child

Source: IRAS

 

Working Mother Child Relief

Being a working mother, you may be eligible to claim for both QCR/HCR and Working Mother’s Child Relief (WMCR) on the same child if you fulfil the conditions. This is still capped at $50,000 per child.

QCR/HCR will have to be claimed first before WMCR. The WMCR will be limited to the remaining balance.

The table below explains how the WMCR amount is calculated:

Child Order WMCR Amount
1st 15% of mother’s earned income
2nd 20% of mother’s earned income
3rd and beyond 25% of mother’s earned income

Source: IRAS

 

Can you share relief on the same child?

You and your spouse can share these reliefs on the same child if there is an agreement on the portion to be used. However, the maximum claim amount cannot exceed $4,000 (QCR) and $7,500 (HCR) for each child.

 

If you are planning on sharing HCR on your handicapped child

John is handicapped and he is Mr. and Mrs. Ow’s, child. They plan on sharing the HCR of $7,500.

Child Relief/Handicapped Child Relief
source: IRAS

 

Based on their agreed apportionment, Mr. Ow and Mrs. Ow will claim $3,500 and $4,000 respectively.

 

Claiming The Qualifying Child Relief (QCR) & Working Mother’s Child Relief (WMCR)

Hilary is Mr. and Mrs. Lim’s, child, she was 10 years old in 2021.

Mrs. Lim is a working mother and earned an income of $320,000 for that year, which qualifies her for WMCR. They decided that Mr. Lim would claim the full amount of QCR of $4,000.

Child Relief/Handicapped Child Relief
source: IRAS

 

For Year of Assessment 2022:

QCR claimed by Mr. Lim $4,000
WMCR claimed by Mrs. Lim Amount of WMCR for the first child

= 15% of Mrs. Lim’s earned income

= 15% of $320,000

= $48,000

 

As the maximum relief claim allowed for a child is $50,000, the amount of WMCR allowed will be $46,000 ($50,000 – $4,000).

The total amount of relief claimed on Hilary by Mr. Lim and Mrs. Lim $4,000 (QCR) + $46,000 (WMCR)

= $50,000

Source: IRAS

 

As mentioned, the sum of QCR/HCR and WMCR is capped at $50,000 per child.

If you are planning to claim Parenthood Tax Rebate and WMCR

Mr. and Mrs. Chen recently have their firstborn in 2021. As a working mother, Mrs. Chen earned an income of $80,000 annually. Both agreed that Mrs. Chen would claim the full amount of QCR of $4,000.

In the case of PTR, both are also entitled to $5,000 for their first child. Compared to QCR, they decided to share the amount of PTR equally at $2,500 each.

Mrs. Chen’s tax computation for Year of Assessment 2022 is as follows:

Employment income of Mrs. Tan $80,000
Less: Personal Reliefs

Earned income relief

QCR

WMCR

CPF Relief

 

($1,000)

($4,000)

($12,000) [15% X $80,000]

($16,000)

Chargeable Income $47,000 [$80,000 – $33,000]

Source: IRAS

 

We then calculate Mrs. Chen’s tax payable for the Year of Assessment 2022

Chargeable Income $47,000
First $40,000 $550
Next $7,000 @ 7% $490
Gross Tax Payable $1,040
Less: PTR $1,040

 

[Mr. and Mrs. Chen are sharing the PTR of $5,000 for their first child born in 2021 (i.e. $2,500 per person). Any unutilised amount of PTR will be carried forward to offset against the income tax payable for subsequent years until the rebate has been fully utilised.]
Net Tax Payable $0

Source: IRAS

 

Claiming QCR/ HCR by e-Filing and Paper filing

The process varies depending on whether it is your first time claiming the rebate and whether you are planning to file it online or through a physical copy.

 

E-Filing

1st Time
  1. Log in with your Singpass or Singpass Foreign user Account (SFA) at myTax Portal.
  2. Go to “Individuals” > “File Income Tax Return”.
  3. Select “Edit My Tax Form”.
  4. Go to “4. Deductions, Reliefs and Parenthood Tax Rebate”.
  5. Go to “Child”.
  6. Click “Update” and enter your claim.
Subsequent Claim If the relief has been allowed to you last year, the amount will be pre-filled and granted to you automatically this year.

Follow the steps above if you need to make any changes to your relief.

Source: IRAS

 

Paper Filing

1st Time Form B1 & B

●      Complete the item on “Child Relief”.

●      Complete the particulars of your child in Appendix 2.

●      If you are also claiming Working Mother’s Child Relief (WMCR), find out how to enter your WMCR claim.

Subsequent Claim Form B1 & B

Complete the item on “Child Relief”

 

If you are also claiming WMCR, find out how to enter your WMCR claim.

Source: IRAS

 

First-time handicapped Child Relief Claims

S/N Eligibility Details
1 The doctor certifies that your child requires assistance in any one of the 6 Activities of Daily Living for physical handicap*: or

 

* (1) Washing or Bathing, (2) Dressing, (3) Feeding, (4) Toileting, (5) Transferring and (6) Mobility

Making a first-time claim

 

If you are claiming Handicapped Child Relief for the first time, please email IRAS the completed Handicapped-Related Tax Relief form.

2 The doctor certifies that your child is impaired in any one of the 3 areas of activities for mental handicap^: or

 

^ (1) Self Care and Activities of Daily Living, (2) Compliance to Psychiatric Treatment and (3) Education or Work

3 Your child is attending or recommended by a doctor to attend a Special Education (SPED) school; or Please provide a copy of the medical report stating that your child is attending/recommended to attend a SPED school.
4 Your child is not attending a SPED school but has significant special educational needs resulting in severe functional impairments. Details to provide are elaborated below.

Source: IRAS

 

You will have to withdraw the claim for HCR from your Income Tax Return if you no longer satisfy the conditions for HCR. This is if the relief has been auto-included for you as per your previous year’s assessment.

 

Non-Special Education (SPED) school

In the case of any Handicapped Child Relief claim for a child in a Non-Special Education (SPED) school

As mentioned in point 4 in the table above, you may apply for the HCR even if your child is not attending a SPED school but has significant special educational needs resulting in severe functional impairments. These types of applications will be reviewed by IRAS on a case-by-case basis. Visit here, to understand the application process.

 

Amending claim for QCR/HCR

In the event, you forget to claim or need to make amendments to your claim for QCR/HCR, it depends on whether you claimed by e-filing or filed a paper income tax return.

 

If you e-Filed your Income Tax Return

You will need to re-file within 7 days of your previous submission or by 18 Apr, whichever is earlier. You will only be able to re-file once. When you re-file, you must 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.

 

If you filed a paper Income Tax Return or are unable to re-file online

Please email IRAS:

  1. your request to claim or revise the relief;
  2. the name and identification number of your child;
  3. the amount of relief that you wish to claim or revise; and
  4. your confirmation that you have met the qualifying conditions

 

Amending claim for QCR/HCR

You will need to file an amendment using the “Object to Assessment” digital service at myTax Portal within 30 days from the date of your tax bill.

If you are unable to do so, you can email IRAS:

  1. your request to claim or revise the relief;
  2. the name and identification number of your child; and
  3. your confirmation that you have met the qualifying conditions

 

First-time Handicapped Child Relief claims

 

Amending claim to be given to my spouse instead

In the case you wish to let your spouse claim the full QCR or share the QCR with him/ her, both you and your spouse should file an amendment using the “Object to Assessment” digital service at myTax Portal within 30 days from the date of the tax bills.

If you are unable to use the digital service, you should email IRAS:

  1. your request to revise the relief;
  2. the name and identification number of your child;
  3. the amount of relief that you wish to withdraw/your husband wishes to claim; and
  4. the confirmation that your husband has met the qualifying conditions.

 

We are here to help!

Raising a child or let alone a child with a handicap requires lots of quality time and love. The Child Relief (QCR) and Handicapped Child Relief (HCR) wishes to recognise the efforts of parents when it comes to supporting their children. If you still have any unanswered questions, we are here to help. Simply fill in the form below and contact us for a non-obligatory consultation now!

 

     

     

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