Parents of a child or adult on the autistic spectrum may receive two yearly income tax credit points according to the condition of eligibility.
Who is eligible?
- Working Israeli residents whose child or whose spouse's child is one of the following:
- Children receiving a Disabled Child Benefit, or those entitled to a Disabled Child Benefit who do not receive it for some reason (for example, a child who lives in an institutional framework or who receives some other benefit such as a Mobility Benefit).
- Children referred to one of the following special education frameworks by a placement committee:
- Special daycare
- Special education school
- Special education class in a regular education school (not including special needs homerooms within a regular education framework (כיתות מקדמות) or integrated classes)
- "Maslul 07" (reinforcement learning) in high school (grades 9-12)
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:
Eligibility for Siblings Acting as Guardians
- A sibling of someone with disabilities who has been appointed to be a guardian over that person's body and property is eligible to receive the income tax credit points if the parents are no longer living or are not functioning due to age or medical condition.
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. For more information see Income Tax Credit Points for a Child or Adult with Disabilities (the how to claim it section.
- In all other cases the local income tax authority office should be contacted and the following documents must be submitted:
- Form 116a: Request for tax deduction due to a family member with disabilities.
- Form 127 - “medical certificate” to be completed by a doctor. The form must include medical information, a clear diagnosis and date of diagnosis.
- For children or adults up to age 21 who were referred to special education - "The placement committee's letter to the student's parents regarding its decision" to refer the child to special education. Click here for an example. Approval that the child actually studied in the special education framework is not required.
- For adults receiving a General Disability Pension - Documentation from the National Insurance Institute indicating the degree of earning incapacity (at least 74%), and eligibility for the benefit (Form 3286 - Section A). This documentation can be requested by calling the call center (*6050), and it will be sent by mail.
- 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|
- The credit is valid for one of the parents’ salaries. If the child is under the custody of only one parent, that parent may request that the credit points be given solely to him/her.
- If there are expenses for a child that resides outside the home, the parents may choose may choose between the income tax credit points explained above and income tax credit for expenses incurred for a child living outside the home.
- If the employee meets criteria entitling additional income tax credit points, he may receive the aggregate of all the credits, in accordance with each criterion (unless otherwise stated). For details on these entitlements, see the portal page Income Tax Credit Points.
Laws & Regulations
- Income Tax Ordinance – Section 45
- Income Tax Implementation Instructions no. 10/2012 - Eligibility for income tax credits based on 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.
- Income Tax - ALUT website
- The original information on this page was taken from ALUT’s Booklet of Rights for Children on the Autism Spectrum.
- Original translation performed by The Shira Pransky Project as part of a grant from The Fellowship Fund.