9 Ways to Maximise Income Tax Relief for Family Caregivers in 2023 | Homage

9 Ways to Maximise Income Tax Relief for Family Caregivers in 2023 (YA2022)

Caring for a loved one? This can also mean making the most of your income tax relief. Learn all you need to know about income tax relief for family caregivers with this quick guide.

by Fathima Az-Zahra

2022 Tax Relief for Malaysian Residents | Homage

Tax Relief

Before filing your taxes on the Lembaga Hasil Dalam Negeri website or on-site at their offices, did you know that family caregivers can get further rebates?

Malaysian caregivers are entitled to a number of tax deductions for the year’s expenses. In this article, we break down everything you need to know about relevant tax relief as a family caregiver.

Here are 9 types of tax reliefs you can claim to maximise your tax refund and reduce your chargeable income:

 1. Self, parents & dependents

Malaysian Family | Homage

A total claim amount of RM9,000 is granted automatically to each individual and any dependents that they have upon filling in the Inland Revenue Board Of Malaysia (LHDN) E-Form.

 2. Medical treatment, special needs and carer expenses for parents

Children who are caring for parents with medical conditions verified by a medical practitioner are entitled to an additional relief of RM5,000 for any cost incurred from special treatments or medical needs. This includes any medical care or treatment provided by a nursing home or even dental treatment such as tooth extraction, filling and scaling. Cosmetic dental treatment, crowning, root canal and dentures are NOT included in the deduction.

 If the parents under the child’s care are regarded as healthy, a total claimable amount of RM3,000 is available where relief of RM1,500 is allocated for each parent. It is important to note that only one (1) child is permitted to claim relief for parents for any given year and each parent’s annual income must not exceed RM24,000.

3. Basic supporting equipment for disabled self, spouse, child or parent

Total tax relief of RM6,000 is available for the purchase of basic supporting equipment for a disabled loved one under an individual’s care. This includes a hemodialysis machine, wheelchair, artificial leg and hearing aids but excludes spectacles and optical lenses. It is also important to note that the senior loved one must be first registered with the Department of Social Welfare (DSW) as a disabled person for the equipment to be claimable.

Need help with elderly care? For more information on how Homage can help with your caregiving needs, fill this form and our Care Advisors will reach out to you within 24-hours!

4. Medical expenses for serious diseases for self, spouse or child

A woman with cancer | Homage

Other than the medical expenses of parents, a total amount of RM8,000 is also claimable for yourself, a spouse or a child. This includes treatments for serious diseases such as: 

  • Acquired Immune Deficiency Syndrome (AIDS)
  • Parkinson’s disease
  • Cancer
  • Renal failure
  • Leukemia

You can also claim for other similar diseases such as heart attack, pulmonary hypertension, chronic liver disease, fulminant viral hepatitis, head trauma with neurological deficit, tumour in the brain or vascular malformation, major burns, major organ transplant and major amputation of limbs.

💡 COVID-19 Tax Relief

You can also claim tax relief for COVID-19 vaccination and swab test expenses of up to RM1,000 for yourself, your spouse and your children.

5. Complete medical examination for self, spouse or child

Full medical check-ups, including mental health examinations for self, spouses or children are claimable to a total amount of RM1,000. However, this amount is also included within the maximum RM8,000 exemption for the medical expenses of serious diseases.

6. Disabled husband/wife

A man with disabled wife | HomageIndividuals caring for a disabled husband or wife are also entitled to an additional deduction of RM5,000.

7. Disabled child

A woman taking care a disabled child | Homage

A total relief amount of RM6,000 is given to a disabled child who is unmarried. If the unmarried, disabled child is pursuing higher education in Malaysia or overseas at a degree level or higher, an additional RM8,000 is claimable. This brings the total tax claimable amount to RM14,000 for a child.

8. Life insurance and EPF 

Life insurance | Homage

As a means to encourage Malaysians to sign up for life insurance, a total claimable amount of RM7,000 is granted for life insurance and EPF for pensionable public servants. For individuals working in the private sector, a total claimable amount of RM3,000 is available for YA2022 assessment. This tax relief includes insurance premium paid for a spouse but not for children under an individual’s care. Individuals who are working for the private sector that has contributed to EPF or any approved scheme may claim RM4,000 for YA2022.

9. Education and Medical Insurance

Lastly, caregivers can enjoy a tax relief total of RM3,000 for any payment made on insurance premium for education or medical needs of a spouse or child.

For more information on the tax relief of the year of assessment 2020, please refer to the exemplary notes here.

Care Wherever You Are

Finding the right caregiver is an important and highly personal process. To help you with the caregiving process, Homage offers a zero-commitment consultation with its Care Advisors to better understand the care needs of your loved ones and offer some clarity on the services that Homage can provide.

Homage also offers care packages that can help you save up to 20% of the caregiving cost. Alternatively, you can consider a la carte service options to suit your care needs better.

For more information or to schedule a call, fill up this form.



 

References
  1. Inland Revenue Board of Malaysia. (2019). Explanatory Notes. [online] Available at: http://phl.hasil.gov.my/pdf/pdfam/Explanatory_Notes_BE2019_2.pdf.

 

About the Writer
Fathima Az-Zahra
Fathima is an English linguistics graduate that finds her calling in the marketing field. In her free time, Fathima enjoys cafe hopping, doing arts and crafts, and baking. Fathima is also a cat mom of four and loves everything kawaii aesthetic!
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