Nothing is certain beside death and taxes, eh?
Got this SMS this morning – just the thing to brighten up my day!
Nothing to lose any sleep over, since I have budgeted quite a substantial amount for annual tax obligations when I received my bonuses.
Oh. The Income Tax – Notice of Assessment has been updated too. I prefer the old one, though.
Not as flashy. *laughs*
I am OK with paying an admin fee to utilize credit cards for income tax payments, as long as there is something for me to gain out of it.
1.2 miles per dollar or even 4 miles per dollar? I’m in!
Well, that was a very different payments landscape in the past, and one year has made a lot of difference.
Having de-prioritized miles chasing (just a little bit), I will be reverting back to monthly GIRO payments for this year’s tax bill.
However, the one thing that I find somewhat irritating is the auto-generated payment plan by IRAS which will inevitably include dollars and cents for the monthly installment.
It messes up my You Need A Budget (YNAB) monthly budget numbers.
A quick fix which I settled upon is basically using a two-step process.
First, I logged into IRAS web portal and made an adhoc one-time payment for via PayNow QR which will be immediately be reflected in my tax account balance.
In my instance, let’s assume that I made a one-time payment of $2.81 just to get rid of the odd numbers.
And because IRAS web portal is super fantastic, the payment is immediately registered and now, I’ll just have to create a payment plan as per normal.
Assuming my tax bill is $450 after the adhoc payment, I can simply schedule a $45 monthly payment for ten months and end up with nice, rounded numbers.
Idle capital can generate returns
If you’re reading this, well if there is one useful point that I can make – idle capital can generate returns! Since payment plans are interest-free, why not hold on to our money for as long as we possibly can?
Let’s say our tax bill is $6,000 and we are going to pay $500 monthly over the duration of twelve months. We can approximate it to the opportunity cost of holding $3,000 in idle cash assets for a year then.
Putting $3,000 to work in an effortless, custodian platform such as Hodlnaut via USD-denominated stablecoins is going to give me the chance to earn $300.
Not too bad, I’ll say.
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Hello! I’m Kevin, Turtle Investor
At the age of 30, I am the Personal Finance Blogger who laid claim to a negative net worth of minus $25,755 – and decided to turn things around.
- Seven years later in 2019, I hit CPF Full Retirement Sum (FRS) of $176,000 without making a single cent of CPF top-up.
- In eight years, I added $453,000 to my net worth (excluding the value of my HDB apartment).
- I made over $12,000 in alternative income in 2020 (and $20,000 in one month) in addition to my full-time job.
I am married to a lovely wife and that means dual income with no kids. In my free time, I chase miles so that we can fly in business class. My hobby is making pocket change off this blog and sharing everything I know with you!