The alarm at children's activities, Beit Chaved, Sderot, March 4, 2024/according to section
A significant benefit for parents of children up to the age of 3: The Finance Committee of the Knesset approved for second and third reading the bill to assist parents of children up to the age of 3, which increases the disposable income of parents of children of these ages and is designed to help parents of young children take part in the labor market.
The increase in income will be done by adding tax credit points or by adding to a work grant for parents whose income is low.
The law still requires the approval of the Knesset plenum in the second and third readings as mentioned.
According to the bill, starting in the tax year 2024, parents of children up to the age of 3 will receive additional tax credit points according to the following distribution: for each child born in the tax year, one credit point will be given to each parent, for each child who turned one or two years old in the tax year, two points will be given Credit for each parent, and for each child who turned 3 years old in the tax year, one credit point will be given to each parent.
These credit points will be given in addition to the points that parents of children currently receive.
The value of a credit point for 2024 is NIS 2,904 per year, and the meaning of each point is a reduction of approximately NIS 242 per month in the tax paid.
This is relevant for parents with a salary that reaches the tax threshold.
The value of the benefit for a parent who can use the credit points in full can reach up to about 484 new shekels per month for each parent, and up to about 968 new shekels per household per month, for each child in this age range.
A single parent in a family without another parent will be entitled to double credit points for each child of the aforementioned ages.
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Kindergarten.
The law is intended to make it easier for working parents/Flash 90, Moshe Shay
The other step in the law approved by the finance committee is the provision of a supplement to the work grant for parents of children up to the age of 3, who are low-income working parents.
The maximum amount these parents will be able to receive will be NIS 470 per month for each child up to the age of 3. The supplement will be given to parents whose average monthly income is within the qualifying income range, and who meet the other eligibility conditions set forth in the Job Grant Law.
The law increases the amount of income that qualifies for the grant - so, for example, while the income ceiling that qualifies for a work grant for 2023 for a parent of one or two children is NIS 6,850, the income ceiling that qualifies for a grant for a child up to the age of 3 is NIS 8,255 for a parent of two, one of whom is under the age of 3, and a salary of up to NIS 9,531 per parent of two children up to the age of 3. This means that there are parents who do not receive a work grant today and yet will be entitled to a grant for a child up to the age of 3. The
addition of credit points is expected to result in a loss of income of approximately NIS 1.3 billion per year starting from the 2024 tax year, And the addition of the labor grant is expected to increase the government's expenses for the payment of the labor grant by approximately NIS 850 million per year starting in 2025.
After the law is approved by the plenary and published in the records, the benefit will be granted retroactively from the beginning of the tax year, and the tax authority will issue instructions to the employer public regarding the realization of the benefit.
Employees who work at one workplace are not required to perform any action in order to realize the benefit.
The self-employed, and all other debtors who submit annual reports to the income tax, will benefit from the benefit as part of the annual tax calculation after submitting the report.
More on the same topic:
Credits
Income Tax
parents
Internal Revenue Service
working parents