Filing taxes is boring work. My late aunt gave me 3 tips to optimise it

Sign up for ST InvestMe and unlock the full access to exclusive insights and financial literacy courses today.

SINGAPORE – The tax season has come around again, but it feels foreign to me.

It is the first time in my adult life that I’ve not had reminders about the deadline from my aunt, who was always on top of things. She died in January after a battle with cancer, at the age of 63.

As she was unmarried, we were very close. She had many views about my life and personal finances.

She questioned why I chose to become a freelancer early in my career, instead of seeking full-time employment.

“How many stories can you realistically write in a week?” she asked, when I told her that a media outlet was paying me $80 for each story.

When she learnt that I was renting a desk at a co-working space, she said: “Are you sure about spending hundreds of dollars on a table?”

Her practicality was annoying, at a time when I was younger and more ambitious.

Still, her questions lingered in my mind. I found a part-time job to supplement my income. I renegotiated my rates with the media outlet. With time, I secured a contract which came with an office space.

As the years passed, I started to treasure her astute observations. It was like having superwoman in my corner with the ability to crunch every number.

My aunt was a trained accountant and accredited tax adviser. She worked in the 1990s at the Inland Revenue Authority of Singapore (IRAS), where she computed personal and corporate income taxes.

She then spent over two decades as a tax and accountancy lecturer at a polytechnic, before retiring in 2023.

She cared deeply about financial prudence, and tax was a realm in which she brimmed with solicited and unsolicited advice.

This is what she taught me.

1. Give your taxes your consideration

We are in the midst of the tax season. Individual income tax filing began on March 1, and those with tax obligations are required to file their returns by April 18.

IRAS may commence legal proceedings against individuals who fail to file their taxes for two years or more.

While it is boring work for many, my aunt believed in not just filing taxes on time, but also starting early. This allowed her to thoroughly evaluate changes in her lifestyle in the year of assessment, and reflect them in her filings.

Since entering full-time employment, I have not paid much attention to my taxes. In years where I didn’t need to file a tax return because my employer had made the submission, I have been guilty of skimming through the details.

In the process, I have missed out on deductions to my taxable income, which would have lowered my taxes. I will be more meticulous this time.

2. Record all your deductions as these add up

My aunt used to say that many things that are habitual are actually tax-deductible.

When I was a freelancer, she encouraged me to record business expenses, like the table at the co-working space, as deductions to my taxable income.

Living with my elderly mother, who does not have an income, also entitles me to a $9,000 deduction in parent relief.

Cash donations made to the Community Chest or approved charities are also deductible, at a rate of 2.5 times the amount donated.

The deductions might seem insignificant when considered on their own. But taken together, they can help to lower a taxable income, to a limit of $80,000 in each year of assessment.

3. Get tax relief while planning for retirement

My aunt also routinely topped up her Central Provident Fund Retirement Account, which was created when she turned 55. She benefited from the interest and tax deductions.

This is far on the horizon for me. However, my friends have started to talk about the Supplementary Retirement Scheme (SRS).

The voluntary scheme allows Singapore citizens and permanent residents to make contributions of up to $15,300 every year, for the same amount of tax deductions. The contributions can be withdrawn without penalties only under specific conditions.

Funds in an SRS account earn 0.05 per cent interest per annum, but they can be invested for a potentially higher return.

I would have needed to make SRS contributions by December 2025 to qualify for tax relief in this season. It is something I will consider for the next.

I will miss my aunt. Her dedicated and methodical nature, which she extended to taxes, reverberated through her life.

She designed invites for our family gatherings and decided on the menu. She took photographs of our time together and edited them.

She consistently bought gifts for her grandnephews and grandnieces, and remembered all our birthdays.

My family speaks about her often, as our grief starts to settle. But even as time passes, I know the routine of taxes will always bring memories to mind.