Negative Income Tax

1. What is a maanak avoda?

Maanak avoda (employment grant) or mas hachnasa shlili (negative income tax) is a GIFT from the government which you can receive if you earn over a minimal amount and below a certain sum. It is a way for the government to encourage people to work and help people who are helping themselves. It doesn’t cost anything to apply, and there’s no harm done if you are turned down.

2. Who should apply?

There are three categories of people who can apply for this grant. In each case, all conditions must be met.

(1)

1. Ages 23-54
2. With kids under the age of 18
3. Employed or self-employed
4. Not the owner of more than 50% of a second real estate property
5. Within this income range:
   1. 1-2 kids – 2,070-6,148 NIS
   1. 3+ kids – 2,070-6,757 NIS
   2. Single parent with 1-2 kids – 1,270-9,422 NIS
6. Gross income of both spouses together is under 14,000 NIS

(2)

1. Over 55
2. Without children under 18
3. Employed or self-employed
4. Earning 2,070-6,148 NIS
5. Gross income of both spouses together is under 14,000 NIS

(3)

1. Disabled
2. Earning less than minimum wage/unable to work full-time

Note: If together a couple makes 14,000 BRUTO together, then they won’t be eligible.

Deadline to apply: 26.12.19

3. How do I apply?

A. You must apply yourself

B. Application deadline is Dec 26, 2019 (later than last year)

C. First timers – go to post office with your teudat zehut (ID card) and Israeli checkbook. The clerk will fill out most of the form for you. You will sign and take the top half home.  The clerk will ask you (1) how many employers you had during the tax year and (2) whether you have been “self-employed.”

D. Second timers – You can go to the post office or fill out the form Online. Online applications are accepted until Dec 31.

4. How do I get an answer?

The easiest thing to do is to wait until you receive a letter in the mail from bituach leumi. If you qualify, the money will be deposited straight into your bank account. If you applied and you do not qualify, no harm done!

If you want to check your status, you will need the claim number printed on the form.

1. Details of the service center hotline and the Tax Authority’s website are on the top half of the claim form.
2. Call *4954, 1-222-4954 or 02-5656400.

5. How much money can I expect to receive?

The amount you receive will vary depending on your circumstances, from 20 shekels/month to 720 shekels/month (240 shekels-8,640 shekels annually).

If you apply by June 30, the funds will be deposited in four payments. If you apply by July 15, you will receive the money in 3 payments. Apply by Dec 26 and receive it in 2 payments – one date TBD and the second on Feb 15.

Information here provided by Rifka Lebowitz, Financial Consultant.

*Please check government sites for most up to date numbers.