7 thoughts on “How To Pay Less Income Tax

  • Jimbo Alba

    My wife is not working but her widowed mother has an autistic son. Can I include her mother and/or her brother as dependent?

  • Hi Jimbo,

    The following may help, but it may be best to consult with an accountant or tax lawyer.

    Personal and Additional Allowable Deductions

    An Individual Taxpayer may deduct, on top of the personal allowable deductions, ALLOWABLE ADDITIONAL EXEMPTIONS ON QUALIFIED DEPENDENTS as provided for in Section 35 of the National Internal Revenue Code. One frequent question on this matter is the erroneous take-up of additional qualified dependents as claim for additional exemptions.

    The new tax exemptions law (Revenue Regulations 10-2008) has no more distinction as to the status of an individual taxpayer since all are afforded P50,000 personal allowable deductions, either an individual be single or married. Now for qualified dependents to be considered for additional allowable deductions, ONLY THE CHILD/CHILDREN, WHETHER LEGITIMATE, ILLEGITIMATE OR LEGALLY ADOPTED as long as the child is below 21 years old, are allowed to be claimed as an ADDITIONAL EXEMPTION/QUALIFIED DEPENDENT OF A TAXPAYER. The amount deductible for each qualified dependent is P25,000, at still, the maximum of 4 allowable qualified dependent.

    [1] //businessonlinetalk.com/qualified-dependents-for-additional-allowable-exemptions-on-taxes/2011/12/21/

  • Response from Philippine Business Online Team

    As with regards to you question on the qualified dependent, regulations 10-2008 is very clear on this and I quote:

    “A dependent means a legitimate, illegitimate or legally adopted child chiefly dependent upon and living with the taxpayer if such dependent is not more twenty-one (21) years of age, unmarried and not gainfully employed or if such dependent, regardless of age, is incapable of self-support because of mental or physical defect.”

    Though the brother falls under one qualification, as such being a special person, however, the main qualification to be a qualified dependent is that such person be an offspring of the taxpayer.

  • Wow! Great info! thanks!

    I can’t believe there are just a handful of comments. I would have thought getting back your money form the government would have gotten a lot of attention.

  • Hi, i would like to know more about how to lessen my tax obligations.. I am still single but i am the head of the family. My parents do not have work, i have a special child brother and another sibling who is in high school now. I am the only one supporting them.. one of the things that burdens me is my tax..it is paniful to see my payslip every month because of the deductions for tax.. the amount being deducted to me could have help my family more. Please help me how can i somehow increase ny exemptions and lessen my tax..thanks

  • Elvin

    Regarding comment by moneysense on June 13, 2012 at 1:18 pm, this would mean that the part in the article where it says the following is wrong:

    “The law also allows additional exemption of P25,000 for each child or dependent (maximum of four), which by definition include senior citizens. So if your parents or even grandparents are dependent on you, then you may even add those to your exemptions. Add them altogether, a single individual can have a maximum exemption of P150,000.”

    I live with my two sisters, aged 21 and 13, the older one is working now but the younger one obviously can’t and is dependent on the two of us although both of are parents are alive. None of them has claimed the youngest for tax exemptions of any sort. I also live with my grandparents, both legally senior citizens and both unemployed. Which of them (sister, or grandparents) could I claim as dependents?

  • I hold a regular job and I pay my taxes through our company. I am now offered a consultancy job. How will this additional income affect my payment of taxes?

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