For more than a year we have been witness to a turbulent period, which began with the coronavirus pandemic, civil disasters, and even a war, which caused an upheaval in almost every home in Israel in almost every area of life. Many of us are suffering from financial and mental trauma. In light of this, we asked financial gerontologist Libat Kempler to enlighten us with tips that are important and worthwhile for you to know.
Libat Kempler has a reputation of more than two decades as a tax adviser, insurance agent and financial gerontologist specializing in holistic advice for the third age – the “winning trio” – the unique specialization in these three areas ultimately brings the desired result for clients.
Ambulatory services and financing of emotional therapy sessions:
Especially now it is important that you know that you can provide you and your family with a “mental insurance umbrella” that includes unique insurance coverage for emotionally focused treatments, including for your children.
Another coverage that you should know about for your peace of mind is “ambulatory services,” which provide a quick and effective response to all daily treatment needs, such as five-star private consultations with specialist physicians and through a quick queue without being preoccupied with bureaucracy, private physiotherapy treatments, private pregnancy checks, diagnostic tests such as MRI, CT, X-rays and more.
Furlough or dismissal:
Employees who have been put on unpaid leave or have been fired may be entitled to a tax refund even if they have received unemployment benefits, since this is a calendar calculation of income tax due to the distribution of tax and credit points over the year.
Gains and losses in the capital market:
The coronavirus has caused great volatility in capital market investments, such as dividends, interest rates, capital gains from savings plans or shares received from an employer and were later sold, sale of an asset with a payment of appreciation tax, and more.
The profits can be offset against the losses and you can get the tax back. If there is a still a loss, it can also be carried forward to the following year.
Pension payment for the preservation of rights during unpaid leave or dismissal:
Employees on unpaid leave or who have been fired and independently paid the payment for the preservation of pension rights, are entitled to a tax refund.
Mortgage and death risk:
The coronavirus may have made it possible to defer monthly mortgage payments but the mortgage risk insurance continued to be paid, a payment for which a tax refund can be obtained.
Retiring before receiving a pension:
Older employees who have retired early are entitled to a tax exemption on their pension or are entitled to withdraw their funds on a one-time basis under certain conditions. This is referring to women from age 62 and men from age 67.
Exemption procedures for receiving a pension involve savings of tens to hundreds of thousands of shekels over the years. This is a one-time procedure, but it is recommended to consult a retirement expert before implementing it.
Fixed tax refunds:
You can get a tax refund up to 6 years back, i.e., from 2015 to 2020. Refunds are given for donations to recognized institutions, those who have completed academic studies, parents of children who have passed placement committees (such as those with focus and concentration problems) at school or for disabled children, a person who works in several jobs, retirees who work and receive pensions at the same time, divorcees who pay alimony, single parents, a person who retires independently, those who switched jobs during the coronavirus period, a woman who has given birth and received a maternity allowance and expenses paid to a tax advisor or accountant.A survey found that about 80% of employees in Israel can receive a tax refund. An exciting example from the last few days is from my client, a 67-year-old pensioner from a medical institution who was afraid to start receiving a long-term pension even though she exercised all her rights there. After taking care of her case, I was able to get an exemption from a grant that she paid tax on, and she received NIS 29,200 back from the Income Tax Division and also started receiving a monthly exempt-pension of NIS 4,940 in addition to the regular salary she continued to receive and so suddenly her monthly net increased by NIS 4,940 per month!
To check eligibility *2372
Libat Kempler – Libat Insurance
Financial Gerontologist
Retirement Guidance Specialist