Israel Tax Authority Urges Eligible Workers to Claim 'Negative Income Tax' Benefit

The Israel Tax Authority has issued an urgent reminder for tens of thousands of employees and self-employed individuals who are eligible for the government's "negative income tax" or work grant, but have not yet claimed it. The deadline for submitting the online application for the next payment is approaching, and eligible recipients could receive thousands of shekels directly into their bank accounts.

The work grant is designed to incentivize labor force participation and assist low-to-middle income earners. The maximum annual grant can reach approximately 13,120 shekels, with the exact amount determined by income level, age, and the number of children. Eligibility generally applies to employees and self-employed individuals aged 21 and over with at least one child under 19, or individuals aged 55 and over, even without dependent children. Qualifying average monthly incomes typically range from 2,300 to 7,200 shekels.

Certain conditions apply. Individuals or their spouses owning more than 50% of an additional real estate property beyond their primary residence, such as an investment property or commercial space, are ineligible. Furthermore, the grant payment is contingent on the employer submitting the required tax forms (form 126) to the Tax Authority.

Applying for the grant is a straightforward, free process that takes less than three minutes. Submissions can be made online through the Tax Authority's website via the government identification system, or in person at Israel Post branches for those who haven't applied online in the past two years. Online applicants need to access their personal area, confirm bank account and employer details, and submit the claim. Those applying via mail must visit a post office with their ID and bank account confirmation.

Grant payments are disbursed in four installments throughout the year: July, October, December, and March. Last year, the Tax Authority advanced the second payment to September to help families with holiday expenses, depositing over 260 million shekels to 130,000 eligible citizens. Submitting an application now will ensure inclusion in the upcoming payment cycle. It is crucial to ensure bank account details are up-to-date in the personal portal to avoid payment delays. The Tax Authority emphasizes that the grant is not automatically disbursed and requires an active claim.