HOW ABOUT RECEIVING A WINDFALL OF MONEY?

Sometimes miracles happen, like the start of the hostages being reunited with their family after over 471 days in captivity.  Then without being aware of it, you can claim money back from Income Tax.  Yes, miracles do happen.  Why can we claim money back and how do we go about it?

When you start a place of employment you fill in the Form 101, the form includes details like family status, ages of your children, when you made aliyah, etc.  This form determines whether you are entitled to a discount on how much you pay in income tax. 

I always suggest that you do a תיאום מס – Tium Mas, every single year to ensure that you paid the right amount of Tax and to check whether you are entitled to a reimbursement, especially in a year where some of you have not worked a complete year. 
Examples:

  1. You were unemployed and had started working again
  2. You changed your place of employment.
  3. You had a new addition to the family.
  4. You had two jobs.
  5. The person who entered your details made a mistake and you were paying too much.

NOW YOU CAN DO IT YOURSELF – JUST BY CLICKING ON THE LINK BELOW

https://secapp.taxes.gov.il/logon/LogonPoint/tmindex.html

You start by filling out Form 116 on the IRS website, click on the link above: 
THE SITE IS ALSO IN ENGLISH!!

You will be required to – In the first part of the form, fill in personal details

In part B of the form – it must be stated whether the spouse has additional income and if so what is the source, whether from salary, self-employed business, pension, etc.

Part C of the form must fill in details about children under the age of 18 for which credit points are also due.

Part D is in fact the central part of the form and must be filled out with extreme care as any mistake in it may change the calculation of the tax adjustment. The first line in this part of the form must indicate the main place of business where you work. The main place of business is the place where their annual income is expected to be the highest of all other jobs. The number of deductions file of the workplace must be indicated. The deduction file number is usually on the payslip at the top and starts with the number 9.

Below the line, indicate the number of months in the year in which you work in this workplace, as well as the total expected gross monthly income and the expected gross annual income.

If tax is deducted from this workplace, it must be stated in the last column in the line.  This is the way to fill in every additional line of the additional jobs in which you work.

In section E of the form, indicate whether you think you deserve additional credit points according to the relevant sections, such as new immigrant, returning resident, disability, donations, children with disabilities, alimony payments, discharged soldier, etc.

The tax adjustment must be made during the year but if for some reason you did not make the adjustment and the tax year ended you can still adjust it.