Parents of blind children are entitle to receive two annual Tax Credit Points from the tax authority.
Eligibility is also valid for those aged 18 and above, in accordance with the terms of eligibility.
Tax refunds may be received retroactively for up to six years prior to the date of the request.
The benefit amounts to 5,160 NIS a year and 430 NIS a month.
For more information see Tax Authority Website
- The benefit is valid even if the child is above the age of 18, on the condition that he/she lives at home with his/her parents and is dependent on them. (For more details see here)
- The sibling of a blind person who is appointed as his/her legal guardian for issues of "body and property" is eligible for the tax credit points if the parents are not alive or are not functional because of their age or health.
Who is Eligible?
- Parents of a child until age 18 that has been diagnosed as blind by a eye Doctor.
Adults over the age of 18
- The entitlement is given for adults over the age of 18 who fulfill one of the following criteria:
- Those referred by a placement committee to one of the special education frameworks detailed above for children under the age of 18. Eligibility is until completion of high school studies.
- Those for whom the permanent degree of earning incapacity is at least 74%.
- Those who meet all 3 of the following conditions:
- Those who are one of the following:
- Paralyzed - Those who have been diagnosed by a neurologist as paralyzed in one of their limbs, or for whom a doctor has indicated that they were born without a limb or had a limb amputated.
- Blind - Certificate of Blindness/Visual Impairment holders.
- Have Intellectual Developmental Disabilities - They have been diagnosed as such by an intellectual developmental disabilities diagnosis committee.
- Those who are completely dependent on their parents, i.e. those still in their parents' custody.
- Even those living in an institution outside their parents home can be considered "completely dependent".
- A "disabled" adult who has married another "disabled" individual and is still dependent on his/her parents may still be considered as "completely dependent" according to the assessment officer's discretion and in accordance with the specific circumstances.
- Those who meet the income test requirements:
- Single adults with disabilities - Their taxable income may not exceed 169,000 NIS per year (as of 2019).
- A married adult with disabilities - Their taxable income and their spouse's taxable income may not exceed 271,000 NIS per year (as of January 2019)..
- For maximum income amounts in previous years and retroactive returns see below.
- Tax-exempt income is also included for purposes of calculating income test requirements.
- Those who are one of the following:
How to Claim It?
- Beginning in November 2017, parents who have a child that receives a Disabled Child Benefit can receive his/her tax credit points directly from his/her employer without going to the income tax authority office and without having to submit a medical certificate (form 127).
- In order to claim the right the parent has to indicate and attest on form 101 that is submitted to his/her employer at the beginning of each year (in the section where one requests a tax exemption or deduction) that:
- He/she is a parent of a disabled child under the age of 19 and is paid a disabled child benefit by the National Insurance Institute.
- His/her spouse does not receive these tax credits.
- The child for whom the tax credits is on behalf, has had no income that year.
- A certificate showing receipt of the disabled child benefit from the National Insurance Institute must be submitted with the form. This certificate can be requested through the call center - *6050.
- For more information see the Notification from the Tax Authority from 19.11.2017.
- In all other cases one should contact their local Tax Authority office and submit the following documents:
- Form 116a - Request for Tax Credit due to a Disabled Family Member
- For a child 18 and under: Form 127 - "medical certificate" – to be filled out by an eye doctor. The form should clearly outline the medical details, provide a clear diagnosis and the date from which the diagnosis is valid from.
- For an adult aged 18 and above:
- Certificate of Blindness/Visual Impairment
- Declaration that the parents are still supporting their child.
- Documents indicating the source of the income of the Blind and his / her partner (if any)
- The tax assessor’s office will provide the parents an approval for an income tax deduction, which they must give to their employer.
- Parents are entitled to receive retroactive tax refunds for six years prior to the date of the request (provided that the entitlement existed during those years), plus the acceptable interest and linkage differentials on income tax.
- In order to receive a refund a request should be submitted to the Tax Authority.
- For more information see Income Tax Return
- Amounts according to the income test for disabled adults in previous years:
|Tax Year||Annual Income Ceiling for a Married Adult||Annual Income Ceiling for a Single Adult|
|2018||268,000 NIS||167,000 NIS|
|2017||267,000 NIS||167,000 NIS|
|2016||268,000 NIS||167,000 NIS|
|2015||270,000 NIS||169,000 NIS|
|2014||270,000 NIS||169,000 NIS|
- Parents of two children who meet the relevant requirements are entitled to receive double credit (4 tax credit points total).
- The credit is on one of the parent's salaries. In the event that the child is in one parent's custody, you can request that the credit is applied to that parent only.
- If there are expenses for a child living outside the home, then the parents may choose between the income tax credit points explained above and Income Tax Credit for a Child in Housing Outside the Home.
- If the employee meets the criteria entitling additional credit points, he may receive aggregate all the credits, in accordance with any one of the criteria are (unless otherwise stated). For details of any entitlements See Tax Credit Points Portal
Laws and Regulations
- Income Tax Ordinance - Section 45
- Income Tax Implementation Instructions no. 10/2012 of the Israel Tax Authority Eligibility for tax credits under Section 45 of the Income Tax Ordinance.
- Tax Credit Calculator for 2017-2018 - Tax Authority website.
- Tax Breaks for Employees - Tax Authority Website.
- Tax Authority announcement from 19.11.2017 - Easing of the process of getting tax credit points for parents of children with disabilities
- Guide to Tax Rights for People with Disabilities on the Israe Tax Authority website
- Chart to help calculate income tax based on salary for January 2019 and onwards - Tax Authority website.
- Know Your Rights and Obligations packet - Tax Authority website.
- Original translation performed by The Shira Pransky Project as part of a grant from The Fellowship Fund.