The Israeli government approved today (Sunday) Finance Minister Bezalel Smotrich’s proposal to extend the validity of the tax benefit that grants an additional credit point to parents of children aged 6-12 until the end of 2023.
The value of a tax credit point in 2023 is 2,820 shekels per year and the meaning of each point is a reduction of 235 shekels from the monthly tax liability of those entitled to it.
The tax benefit was given for the year 2022, as part of the government’s efforts to deal with the rising cost of living. Following the advance of the elections, the validity of the benefit was extended until the end of February 2023. The current bill extends the validity of the benefit until the end of 2023, but it states that if by May 31, 2023 you do not approve the introduction of a new state budget, the benefit will expire on that day.
The bill states that parents of children who turned at least 6 years old during the tax year but did not turn 13 years old during the tax year will benefit from an additional tax credit point. Its approval will result in a situation where a woman will be entitled to 2 tax credit points for each child of these ages and a man will be entitled to 1 credit point.
A parent in a single-parent family, who is responsible for the children, will be entitled to 2 credit points for each child of these ages and a parent who is not responsible for the children will be entitled to 1 credit point.
Earlier today, the bill was approved by the Ministerial Committee for Legislative Affairs. Later, the proposal will be submitted for approval by the Knesset and only after its approval and publication of the law in the records will the benefit come into effect.
After the completion of the legislation, the Tax Authority will issue instructions to the public of employers and employees regarding the realization of the benefit. The Tax Authority will also work to proactively amend tax reconciliations submitted during the month of March, before the legislation came into effect, so that parents who conducted a tax reconciliation before the benefit was extended will receive the credit points without being required to have a new tax reconciliation.
Finance Minister Bezalel Smotrich: “Another step in the fight against the cost of living.” The renewal of the tax point benefit for parents with children between the ages of 6-12 is important news for Israeli parents, as part of the budget we are extending the benefit up to the age of 18. The struggle with the cost of living is shared by every citizen in Israel, in the budget and the Settlements Law we made important decisions that will be felt in every home in Israel. The points are good news for the middle class and we will continue the effort to make it easier for households and working parents. Working for the citizens of Israel.”