The Grandparent Caregiver Relief (GCR) is a valuable tax relief in Singapore for working mothers who rely on their parents, grandparents, or in-laws to care for their children. This guide explains eligibility, claim amounts, and the steps to maximise your tax savings for YA 2025.
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📌 What is Grandparent Caregiver Relief?
The Grandparent Caregiver Relief is designed to support working mothers by providing tax relief if their parents, grandparents, parents-in-law, or grandparents-in-law help take care of their young children. This policy acknowledges the role grandparents play in childcare and aims to encourage family-based caregiving.
💰 Relief Amount for YA 2025
For Year of Assessment (YA) 2025, eligible working mothers can claim up to:
- S$3,000 per eligible dependant caregiver.
This amount is a fixed deduction from your taxable income, which directly lowers the tax you owe to IRAS.
✅ Eligibility Criteria
- You must be a working mother with taxable earned income in the year preceding YA 2025.
- Your child must be a Singapore Citizen aged 12 years or younger in the relevant year.
- The caregiver must be your parent, grandparent, parent-in-law, or grandparent-in-law living in Singapore.
- The caregiver must not have any taxable income above S$4,000 in the year (unless they are handicapped).
- The caregiver must not be claiming Foreign Domestic Worker Levy Relief for the same child.
📄 How to Claim GCR
- Log in to myTax Portal during the tax filing period.
- Go to the “Deductions, Reliefs and Rebates” section of your tax return.
- Select Grandparent Caregiver Relief and input the dependant’s details including NRIC.
- Confirm eligibility and submit your return.
- Retain supporting documents (proof of relationship, residency, and childcare arrangements) for at least 5 years.
⚖️ Important Rules & Restrictions
- You can only claim GCR for one caregiver per YA.
- GCR cannot be shared with your spouse; it must be claimed by the mother.
- The caregiver must not be gainfully employed unless their annual income is below the threshold.
- The relief is only available if no one else is claiming a similar benefit for the same dependant.
💡 Tax Planning Tips
- Combine with WMCR: You can claim both the Grandparent Caregiver Relief and Working Mother’s Child Relief if you meet all conditions.
- Ensure Income Threshold Compliance: If the caregiver has part-time work, keep their annual income below the $4,000 limit to remain eligible.
- Document Care Arrangements: Keep records or declarations confirming that the grandparent was the primary caregiver.
- Coordinate with Siblings: If your siblings also receive childcare help from the same grandparent, decide who will claim the relief to avoid IRAS disputes.
📌 Final Thoughts
The Grandparent Caregiver Relief offers a meaningful way to lower your tax bill while recognising the vital role of family support in raising children. By understanding the eligibility rules and filing process, you can make the most of this relief in YA 2025 and beyond.
