A tiny mistake, a huge loss: why you must double-check form 101

About 20 years ago, a friend of mine—a smart lawyer—told me how she accidentally noticed that on her Form 101 (Tofes 101), under the gender column, she was listed as "Male."

For two years, this unintentional "gender swap" cost her 1,200 ILS per year (back then, a tax credit point—Nekudat Zikuy—was worth around 200 ILS). In the third year, she finally noticed it. Together, we went to her workplace accountant, corrected the mistake, and I helped her file for a tax refund for the previous two years to get her money back.

To avoid such accidental gender changes or other costly mistakes, it is highly recommended to fill out Form 101 very carefully and accurately at the beginning of every tax year and whenever you start a new job. Your employer will provide this form to you.

Here is what you should pay special attention to:

Employee Information – Part ב (B): Your ID number (Teudat Zeut), phone number, name, date of birth, date of Aliyah (if applicable), address, and gender! Also, make sure to state your marital status and check the box confirming you are a resident of Israel.

Information About Your Children – Part ג (C): Children who will not yet turn 19 this calendar year. You must enter the details for each child.

Income Information from This Employer – Part ד (D): Is it a monthly salary, partial position, daily wage, pension, stipend, or income from an additional job?

Information About Other Income – Part ה (E): If you have no other sources of income, check the box in the first line of this section and move on to the next. If you do have other income, check the second line, select the type of income, and specify whether you want to receive your tax credit points at this job or the other one. Also, indicate whether pension or Keren Hishtalmut contributions are being made from your other income.

Spouse Information (if applicable) – Part ו (F).

Changes in Your Personal Information During the Year – Part ז (G).

Eligibility for Tax Credits and Exemptions – Part ח (H): Who is eligible for tax benefits?

1. Resident of Israel.
2. Individual with a 100% disability.
3. Permanent resident of a qualified locality (peripheral/eligible settlements).
4. New immigrant (Oleh Hadash) / Returning resident.
5. A spouse who lives with you and has no income in the current tax year (provided that you or your spouse have reached retirement age or have a disability).
6. Single parent (unmarried, divorced, or not cohabiting with the other parent).
7. The section regarding children listed in Part ג (C) – filled out by a single parent receiving child allowance, a married woman, or a sole parent.
8. The section regarding young children – filled out by an unmarried woman or a sole parent whose children do not depend on them for support and who did not check box 7.
9. A sole parent whose children depend on them for support.
10. A parent living separately from their children who pays child support based on a court ruling.
11. A parent of a disabled child under the age of 19.
12. Alimony payments to an ex-spouse—meant for those who have remarried.
13. You or your spouse are between 16 and 18 years old in the current tax year.
14. Discharged soldier or someone who completed National Service (Sherut Leumi) – specify the start and end dates of service.
15. Completion of an academic degree, internship, or professional training.
16. Anyone who served in the military reserves (Miluim) in the previous year (attach an IDF certificate).

Tax Coordination – Part ט (I): If you need a tax coordination (Teum Mas). For example, if you had no income from the beginning of the current year, have an additional job, or already have an approved Teum Mas from the Tax Authority.

And finally, Declaration – Part י (J): The last section. You write the date and sign, declaring that you have provided complete and accurate information.

And that's it! Good luck!