Parents in Singapore can significantly lower their taxable income by claiming Qualifying Child Relief (QCR) or Handicapped Child Relief (HCR). Understanding the differences, eligibility rules, and claim strategies will help you maximise your tax savings for YA 2025 and beyond.
📌 Understanding Qualifying Child Relief (QCR)
The QCR is designed for parents who support a qualifying child during the year before the Year of Assessment.
- Relief amount: S$4,000 per child
- Child must be:
- Below 16 years old; or
- Studying full-time in a recognised educational institution
- Child’s annual income (including allowances) must not exceed S$4,000
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🩺 Understanding Handicapped Child Relief (HCR)
HCR offers a higher relief for parents supporting a child with physical or mental disabilities, regardless of the child’s income.
- Relief amount: S$7,500 per child
- Applicable for:
- Children certified as physically or mentally handicapped by a qualified doctor
- Children with disabilities registered with recognised bodies like SG Enable
- No income cap — applies even if the child earns more than S$4,000 annually
⚖️ Key Differences Between QCR and HCR
| Criteria | QCR | HCR |
|---|---|---|
| Relief Amount | S$4,000 | S$7,500 |
| Income Threshold | ≤ S$4,000 | No limit |
| Eligibility | Child under 16 or in full-time education | Child with certified disability |
| Medical Certification Required | No | Yes |
💡 Which One Should You Claim?
You can claim either QCR or HCR for each child, but not both. If your child qualifies for HCR, it’s generally more beneficial due to the higher relief amount and the absence of income restrictions.
✅ Claiming Tips for Maximum Tax Savings
- Evaluate Eligibility: Check if your child meets HCR criteria — the higher deduction can greatly reduce your tax bill.
- Medical Certification: If claiming HCR, secure official certification before filing.
- Coordinate Between Parents: Only one parent can claim per child; choose the parent in the higher tax bracket for maximum savings.
- Combine With Other Reliefs: You can also claim Parenthood Tax Rebate or Working Mother’s Child Relief (if eligible).
- Stay Updated: IRAS rules and relief amounts can change — review annually.
📄 Claiming Procedure
- Declare claims via IRAS’ myTax Portal when filing your annual tax return.
- Provide required supporting documents (medical certificates for HCR).
- Ensure information is accurate to avoid delays or rejection.
🔍 Final Takeaway
Choosing between Child Relief and Handicapped Child Relief can make a meaningful difference in your tax liability. For YA 2025, parents should assess their child’s situation carefully and claim the relief that maximises their tax benefits.
