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
• Two credit points during the tax year following the birth year, and the tax year pursuant to that
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.