How to Check Tax Refund Eligibility — Step-by-Step Guide

What is a Tax Refund and Who is It Relevant For?

A tax refund is money that the state returns to you when you have had tax withheld or paid more tax than required during the tax year. This often occurs due to deductions that were not taken into account, documented expenses that were not deducted, or changes in family status.

Checking tax refund eligibility is relevant for almost anyone who pays taxes in Israel: employees who had excessive tax withheld, self-employed individuals who incurred losses in a given year, business owners with expenses that were not taken into account, and even new immigrants who do not yet fully understand Israel's tax system.

Important point: a tax refund is not a gift or benefit — it is your money. If you are entitled to it, it is important to know how to check your eligibility yourself or with the help of an accountant.

How to Check Tax Refund Eligibility — Step by Step

The process of checking eligibility is not as complicated as it may seem. If you prefer to do it yourself, here are the basic steps:

1. Collect all relevant documents: salary slips from the previous year (if you are employed), annual report or advance report (if you are self-employed), receipts for expenses (if you have deductible expenses), documents on tax payments already made, and any document relevant to changes in your status (marriage, divorce, birth, immigration to Israel).
2. Calculate the amount of tax you actually paid: Review all the slips you received, the direct payments you made to the tax authority, and all deductions made in your name. This amount is the basis for the calculation.
3. Calculate the tax you are supposed to pay: This depends on your income, the deductions you are allowed to make, and the tax benefits you are entitled to (such as a credit for children, pension fund deposit credit, etc.).
4. Compare the two amounts: If the tax you paid is greater than the tax you are supposed to pay, you are eligible for a refund.
5. Submit a formal request: If you are convinced that you are eligible, you can submit a request to the tax authority through their website or through a special form. If you are working with a certified public accountant, they will do this on your behalf.

Each step requires accuracy. A small calculation error can delay the refund or even result in you having to pay more.