Parents of children with learning disabilities

Has your child received a diagnosis? You may be entitled to a tax refund for learning disabilities

Many parents of children with learning disabilities or ADHD aren’t aware that the law explicitly states that they are entitled to a tax refund for children with learning disabilities. This entitlement was enacted into law in order to offset the financial costs this often brings for parents.

According to Section 45 of the income tax ordinance – parents of children with learning disabilities or ADHD who are employed or self-employed are entitled to receive an income tax refund.

Who is entitled to a tax refund for a child with learning disabilities?

An employee who is a resident of Israel and whose child, whether it is that individual’s child or their partner’s, who has a developmental delay due to a serious learning disability and about whom it is determined by the placement committee to refer the child to one of the following educational settings:

• Special education kindergarten
• School for special education
• Special education class of a standard school (not an advanced or integrated class)
• In high school (Grades 9-12), “Track 07” (learning reinforcement)
• A child referred to a special education setting by the placement committee

How can you receive the tax refund?

Contact our specialists, whose resume includes many years’ experience with tax refunds for children with learning disabilities. To apply for a tax refund, you’ll need to submit a tax return.
Documents you will be required to submit:

• Form 116A – Request for tax credit for relative with disability
• Notice to Parents of Placement Committee Decision – referral of the child to special education – you are not required to show actual confirmation of studies within a special education framework

Entitlement will be determined from the tax year in which the child was referred to special education until the transfer to the next educational level (from kindergarten to elementary school; from elementary school to middle school, and from middle school to high school), as long as the referral of the placement committee exists.

For the purposes of proving entitlement, the parent must produce the Notice to Parents of Placement Committee Decision documenting the fact that their child has been referred by the placement committee to a special education setting. It should be noted that parents will not be required to provide confirmation that the child has actually begun learning in a special education setting, though many assume this is required.

In the event that neither of the parents has claimed the credit points to which they are entitled for the past six years, it is possible to submit tax returns for these years and to request the tax refund retroactively.

Amount of the tax benefit

The amount of this benefit is two credit points annual or, alternatively, payment towards maintaining the child in the institution in place of credit points.
This tax benefit may be selected in accordance with expediency.

Does your child suffer have ADD or ADHD?

You are entitled to income tax refunds of thousands of shekels.