Request for tax deduction for family member with disabilities (Form 116a)

Who can apply?

Parents with a taxable income meeting the following conditions:

• Israeli citizens
• They or their spouse have a handicapped child
• Clarification: the tax credit is given to one parent only. In the case of divorced parents, both parents are entitled to the benefit as long as the child under their permanent care and responsibility (meets the definition of "financially dependent").

What to attach?

Form 116a - Incapacitated Child Tax Credit and the following relevant documents:

• For children under the age of 19
  • An attestation from the National Institute of Social Welfare regarding the disabled child's allowance for the current year must be attached only if the application is submitted through the employer's form 101. (When submitting directly to income tax, it is not necessary to obtain an authorization from the national insurance, the system is automatically updated)
  • If the child has been referred to the special education program because of a severe learning disability, the parent will file the "Notice to the Parents about the Decision of the Placement Committee/Eligibility and assessment Committee."

• For major children (older than 19 years) the following relevant documents must be attached as applicable to the case:
  • There is no need to attach a certificate for children who are permanently disabled (74% or more) following a decision of the National Insurance, the information is updated automatically.
  • Certificate of Blindness/Visual Impairment in relevant cases.
  • In the case of a developmental intellectual disability - a copy of the decision of the diagnostic committee (from the Labor and Welfare Office).

The service is free of charge.

How to apply

The service allows one parent (In the case of divorced parents, both parents are entitled to the benefit as long as the child is financially dependent on his/her permanent) to receive credit points through one of the following options:

Application through the employer
This option is only available to parents receiving a Social Security disability benefit for their child ( under the age of 19), for the current tax year.

• On the Form 101 of the employer the following items must be marked:
  • A parent of a handicapped child, who has not yet reached the age of 19.
  • He benefits from a disabled child allowance from the National Insurance Institute.
• The parent must provide the employer with a certificate valid for the current year, stating that he/she is receiving the disabled child allowance from the National Insurance Institute.

Form 116a and all required documents must be completed and submitted in one of the following ways:

Application for previous years

Apply for an income tax refund (Form 135)

Internet

Apply online to the Public Inquiries System, add the form and the requested documents after having scanned them.

Visit the assessment office

Visit the nearest assessment office and complete Form 116a - Incapacitated relative Tax Credit along with the required documentation.

Clarification

• Pursuant to a change in regulations, only in exceptional cases Form 127 - a medical certificate, is required for those who do not attend special education, do not receive a general disability benefit and meet one of the following definitions: paralyzed or blind or mentally handicapped.
• In appropriate cases, the tax authorities will inform the applicants about the need to complete this form.
• In order to obtain refunds under Section 44 (not credit points) for supporting a family member living in a care institute, you are required to act according to what is mentioned in the service Tax Credit due to a Disabled Family Member in an institution (Form 116)