According to the Income Tax Ordinance (Section 37), someone who is employed whose spouse has no income is eligible for one income tax credit point if one of the partners is [[::Blindness and Visual Impairment| blind]], has reached retirement age, or has disability above 90%.
- The benefit is worth 2,616 NIS per year and 218 NIS per month (as of 2019).
Who is Eligible?
- Israeli residents who have income tax deducted from their salary, are married to someone who has been proven to the tax assessor to be a dependent and meet one of the following criteria:
- They or their spouse has reached retirement age.
- They or their spouse is blind.
- They or their spouse have a determined medical disability of 185 days or more, in the amount of 100% from one disability or above 89% from multiple disabilities (weighted calculation) if the disability has been established in accordance with one of the following laws:
- The Invalids Law (Compensation and Rehabilitation) (disabled IDF veterans)
- The Invalids (War Against the Nazis) Law (individuals disabled in war against the Nazis)
- The Invalids (Nazi Persecution) Law (Holocaust survivors receiving a pension from the Ministry of Finance)
- The Benefits for Victims of Hostile Acts Law (victims of hostile acts)
- The Ringworm Victims Compensation Law (Ringworm Victims)
- The National Insurance Law (Work Disability, General Disability, Volunteers Injured whilst Volunteering
For example: A man who has suffered an illness that results in disability after reaching retirement age and can not submit a claim for disability pension due to his age, but wishes to receive Rights for People with Medical Disabilities that are not Contingent on Receiving a Disability Pension.
How to Claim It?
- Applicants must fill out Form 101 and submit it to their employer before the end of the tax year (before the end of December).
- Relevant documentation must be attached, such as: Certificate of Blindness/Visual Impairment or the minutes from the General Disability Medical Committee that established disability.
- Those who are self-employed must fill out Form 1301 - Annual Report and attach the relevant documentation as explained above at the end of the tax year.
- If the tax year has passed, the employee may submit a tax reimbursement request to the relevant tax assessor's office. Click here to locate tax assessor's offices according to location. Reimbursements may be received up to six years retroactively.
- Income tax credit points are only given to Israeli residents.
- The income tax credit point for a non-working spouse is given in addition to the income tax credit points (2.25) granted to Israeli residents.
- If the employee meets the criteria entitling additional tax credit points, they may combine all the tax credit points, in accordance with any one of the criteria are (unless otherwise stated). Details of any entitlements See: The Tax Credit Points Portal.
- A married women who is unemployed is exempt from national insurance and health insurance payments if her husband is insured. For more information see:
Laws and Regulations
- Income Tax Ordinance - Section 37
- Tax Breaks for Employees - Tax Authority website.