Tuesday, October 23, 2012

Negative Income Tax (Israel)

Just a friendly reminder about the negative income tax for 2011. The deadline to file based upon your 2011 earnings has been extended to November 30th.

It's easy. Just go into the post office (not all post offices do all tasks, please verify which branch to use), with your Teudat Zehut and your bank account information (take a check, everything they need is on there, or get a letter from your bank, the banker will have a form to fill out and stamp if you don't have a check. Just knowing your account # and branch # isn't enough, it needs to be "official".). Let the clerk know that you want to apply for "mas shleelee". Answer a few questions, and then go home. Your approval may take a few weeks, and you'll be given instructions for checking the status online.

This program is open to people who earned, on average, no less than 2040 shekels per month and no more than 6645 shekels per month. Even if some months you earned more, if you were unemployed or under-employed for part of the time, you may qualify. In some cases, people who are (legally) self-employed qualify as well... If you were employed by a relative, you are not allowed to claim this benefit.

If you have questions about it, call the tax authority at *4954.

Check it out and see!

Nothing ventured, nothing gained.



  1. How does it work if one person earns more and one earns less than this amount? Is it combined?

    1. They do ask the employment status of spouses, but it is unclear to me how that impacts benefits... i will see if i can find out any more information.

  2. I got a letter about this today. I'm going to check it out. If you qualify what do you get? Is it a one off stipend or a monthly benefit?

    1. The amount you get depends on the # of children you have, or your age, and your income level. It ranges from 20 shekels per month to 470 shekels per month. It appears that it will be paid in 2 installments - on Jan 15, 2013 and April 15, 2013.
      Hope you figure it out...

  3. If your spouse earns too much they disqualify you. My DH applied based on his income and the letter he got denying him the benefit said it was because of my salary. Even though the information the government gives out CLEARLY states it's on personal income only. Oh well, in 2012 I had 3 months of unpaid leave so he'll qualify for 2012.

    1. Marion, thank you so much for the update.
      I couldn't find anything about spouse's income having an impact, but I guess they didn't give ALL the details.


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