benefits for parents

 

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Tax Benefits for Parents of Young Children

 
General

​Dear Parents.


I wish to bring to your attention that working parents of young children will benefit from additional income tax benefits as of 1.1.12. The tax benefits will increase the available income and alleviate the expense of raising children.

Parents will benefit from these tax breaks through credit points which reduce the amount of their income tax payments, while each credit point has a value of NIS 218 per month (as at January 2015).

A. Credit points for infants

    As of 1.1.12 fathers of children under 4 years old also benefit from credit points for the 
    current  tax year (hereinafter: "infants").

The credit points will be granted as follows:
• One credit point during the infant's birth year and for the tax year in which he turns 3 years 
   old.
• Two credit points during the tax year following the birth year, and the tax year pursuant to that 
   year.
 

B. Additional credit point for children up to the age of 5

    As of 1.1.12, mothers benefit from an additional credit point for each child starting from the 
    year following the birth year until the tax year when he turns 5 years old.

    The additional credit point is added to the regular credit points mothers are entitled to for each
    child, which are: half a credit point of newborn (born during the tax year) or a young-adult
    (who turned 18 during the tax year), and one credit point for each child age 1 to 17 years.

    The credit points for children are given to the mother, whereas credit points for infants are
    given to the father. Nevertheless, in cases where the parents live separately and the children
    are in the father's custody the credit points for the children will be given to the father and the
    credit points for infants will be given to the mother.


    Additionally, single parents with children in their custody are entitled to credit points for the 
    infants as well as the credit points for the children.

    In order to receive the tax breaks in form of credit points apply through the employer or to the 
    local Tax Assessor Office in your area of residence.

 
Credit Points According to Family Status
​FAMILY STATUS ​CREDIT POINTS
​*A single male
*A married man without children
*A widow/divorced man without children
​2.25
​*A single female
*A married woman without children
*A widow/divorced woman without children
​2.75
​*A married man (single benefactor) whose wife has no income, without 
 children
*An adolescent boy 16-18 years old
*A father of an infant during his birth year and the year he turned 3  
 years old (except for a separated father, living apart ,who 
 has custody of  his children)
*A man living separately who pays alimony for a child (who is not an  
 infant) who is not in his custody
*A married woman of an young-adult or newborn
​3.25
​*A single male, parent of a young-adult in his custody
*A father living separately with a newborn or young-adult in his 
 custody
*An adolescent girl 16-18 years old
*A married woman who has a child 6 to 17 years old
​3.75
​*A father of an infant for the tax year following the birth year, and the
 tax year pursuant to that year (except for a father living separately
 with custody of his children).
*A male single parent with one child age 6 to 17, in his custody
*A man living separately with one child age 6 to 17, in his custody
*A woman living separately with a young adults in her custody 
​4.25
​*A married woman with a child one year after his birth year until he
 turns 5 years old
*A male single parent with a newborn in his custody.
​4.75
​*A female single parent with a newborn in her custody
*A male single parent with one child, age 4 or 5, in his custody
*A male living separately, who pays alimony for an infant during the
 year after the birth year and the year in which he turns 2 years old,
 who is not in his custody
*A father living separately with one child age 1 year to 5 years in his 
 custody
​5.25
​*A female single parent with one child age 4 or 5, in her custody
*A female living separately with a child age 1 year to 5 years in her 
 custody
*A female living separately, who pays alimony for an infant during the
 year after the birth year and the year in which he turns 2 years old,
 who is not in her custody
​5.75
​*A male single parent with one infant age 3 in his custody ​6.25
​*A female single parent with one infant age 3 in her custody ​6.75
​*A male single parent with an infant during the year after the birth year
 and the year in which he turns 2 years old, who is in her custody
​7.25
​*A female single parent with an infant during the year after the birth
 year and the year in which he turns 2 years old, who is in her custody
​7.25

 

Single beneficiary: an individual or his spouse who reached retirement age or a blind or disabled person according to Article 9(5) of the ordinance.

Single parent: whose spouse is deceased or registered in the population registry without details of a spouse

Infant: a child who has not turned 4 years old during the tax year.

Newborn: a child during his birth year

Young-adult: a child who turned 18 years old. 
 

 
Work Grant

The work grant payable to people eligible to receive it for the year 2014 by virtue of the "Negative Income Tax" Law, applicable as of 1.1.2015, will be increased by 150% increase for the following:

• A working mother of one child or more
• A working single parent father of one child or more, whose children live with him and whom he 
  supports

  Additional details regarding eligibility for a Work Grant can be verified at the call center: *4954  
  The above information is presented in general terms and is not to be deemed the language 
  of the law.