On video: Parents of toddlers protest following the suspicion against the kindergarten teacher from the Witzo daycare center in Sderot/Yaniv Kalif
Parents of small children?
Get ready for a pleasant surprise in your paycheck.
The Tax Authority updated this morning that the law on assistance to parents of children up to the age of 3 entered into force retroactively from the beginning of the year.
According to the law, starting in the tax year 2024, parents of children up to the age of 3 will receive additional tax credit points according to the following distribution: for each child born in the tax year, one credit point will be given to each parent, for each child who turned one or two years old in the tax year, two credit points will be given For each parent, and for each child who turned 3 years old in the tax year, one credit point will be given to each parent.
These credit points will be given in addition to the points that parents of children currently receive.
The value of a credit point for 2024 is NIS 2,904 per year, and the meaning of each point is a reduction of approximately NIS 242 per month in the tax paid.
This is relevant for parents with a salary that reaches the tax threshold.
The value of the benefit for a parent who can use the credit points in full can reach up to about 484 new shekels per month for each parent, and up to about 968 new shekels per household per month, for each child in this age range.
A single parent in a family without another parent will be entitled to double credit points for each child of the aforementioned ages.
Parents who earn a low salary will be able to receive a work grant of up to NIS 470 per month/ShutterStock
The law will apply retroactively from the beginning of the year.
The self-employed, and all other debtors who submit annual reports to the income tax, will benefit from the benefit as part of the annual tax calculation after submitting the report.
Employees who work at one workplace are not required to perform any action in order to realize the benefit, their employers will calculate the additional credit points without an application.
The Tax Authority has updated that it will work to proactively correct tax reconciliations submitted during the year by those who have more than one employer, so that parents who conducted a tax reconciliation before the benefit was approved will receive the credit points without having to contact the Tax Authority in order to receive a new tax reconciliation.
The revised certificates will be sent as soon as possible.
The law also includes providing a supplement to the work grant for parents of children up to the age of 3, who work and have a low income, starting in early 2025 for the eligibility year 2024. The amount of the supplement will gradually increase in the lower income ranges until it reaches a maximum amount of NIS 470 per month for each child up to the age of 3. Then it will gradually decrease in the higher income ranges.
The supplement will be given to parents whose average monthly income is within the qualifying income range, and who meet the other eligibility conditions set forth in the Job Grant Law.
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Internal Revenue Service