[help] Personal Income tax question

[burntan]

Under separate assessment, both parents are entitled for child relief so need to elect whether 50%/50% split or one parent take 100%. Rule of thumb for good tax planning is to claim child relief under the parent with higher income (ie higher tax rate bracket).

As for whether to go for separate or joint assessment, better to do a simulation tax calculations to compare differences. Joint assessment is best where your wife's Personal relief/EPF/insurances cannot be utilized to the max due to insufficient income. So under joint, the husband can make use of these excesses. Also under joint, the wife relief is claimable as well.

Really appreciate your help. Like to clarify, if separate filing, is that mean I can't have wife relief anymore?

[trex92]

Really appreciate your help. Like to clarify, if separate filing, is that mean I can't have wife relief anymore?

Under separate filing, one cannot claim for wife relief. This is a common mistake made.