Tax Refund (Ehzer Mas): How to Claim Overpaid Tax for 6 Years

The Principle

A tax refund (Ekhzer Mas) is a procedure that allows for the recovery of overpaid income tax (Mas Akhnasa) from the state. If more tax was withheld from your salary during the year than was legally required, you have the right to file a request and receive the difference back into your bank account. A request can be filed retroactively for the past 6 years.

Eligibility

Tax overpayment often occurs for salaried employees because the accounting department does not always account for all the benefits to which you are entitled. Check if at least one of the following points has applied to you in the last 6 years:

• You changed jobs during the year.
• You were unemployed for part of the year (e.g., on unpaid leave or between jobs).
• You are a new immigrant (Oleh Hadash) and have not used all your tax credit points (Nekudot Zikui).
• You had a child.
• You completed your studies and received an academic degree.
• You paid alimony.
• You made private contributions to a pension fund or an advanced study fund (Keren Ishtalmut).
• You served in the reserve duty (Miluim).
• You or a member of your family has a disability.

Who is NOT eligible:

• Individuals who did not pay income tax (Mas Akhnasa) in the requested year because their salary was below the tax threshold.

Your Rights

You are entitled to a refund of the full amount of the overpaid tax. Furthermore, this amount accrues interest and is linked to the Consumer Price Index for the period from the end of the tax year for which you are filing the request until the actual refund is issued. This protects your money from inflation.

Step-by-Step Guide

1. Gather documents. The primary document is the annual salary statement (Tofes 106) from each employer for the year for which you are requesting a refund. Also, collect all documents confirming your eligibility for tax credits (birth certificates, diplomas, etc.).
2. Complete the request form. You must fill out a special form from the Tax Authority (Form 135 or 1301). The form can be found on the official website of the Tax Authority. It must be filled out with great care.
3. Submit the request. The request can be submitted in several ways:
   • Online: Through your personal account on the Tax Authority's website. This is the fastest and most recommended method.
   • In person: At the Tax Authority (Mas Akhnasa) office corresponding to your place of residence.
   • By mail: By sending all documents via registered mail.
4. Await the decision and payment. After submitting the documents, the Tax Authority will review your request. This process can take from several months to a year. If the decision is positive, the money will be transferred directly to the bank account you specified in the request.

Document Checklist

• Annual salary statements (Tofes 106) from all employers for each year for which the request is being filed.
• A copy of your identity card (Teudat Zeut) with its appendix (sefach).
• A check or a bank certificate with your full bank account details for the refund transfer.
• Documents confirming eligibility for tax credits (depending on your situation):
  • Children's birth certificates.
  • A copy of your academic degree diploma.
  • Certificates from Bituach Leumi regarding receipt of benefits.
  • Annual reports from pension funds and "Keren Ishtalmut" regarding contributions made.

Potential Pitfalls

• The statute of limitations is 6 years. You cannot file a request for a tax refund for the year 2017 in 2024. Do not delay filing.
• Filing a refund request may trigger an audit of your income. If you have undeclared income, this could result in penalties.
• If you have debts to the Tax Authority, the refund amount will first be used to settle these debts.
• An error in filling out the form can lead to rejection or significant delays. Double-check every figure.
• Keep copies of all submitted documents until the money is received in your account.

Contacts and Links

For current forms and to submit an online request, use the official website of the Israel Tax Authority (Rashut a-Misim). You can find it by searching for "רשות המסים בישראל".

• Israel Tax Authority's nationwide information center: *4954

Glossary