Well, it seems I’ve been an atzmai for about two years two months!
I apologize to you, my faithful readers, for not updating this blog more frequently, not to mention for not providing more significant and relevant and helpful (and authoritative) information. You can dock my salary:-)
Seriously, I would appreciate feedback, which would motivate me to write more…
Now that we’ve gotten that off of my chest, here are my comments on completing a Doch Shnati Annual Tax Return:
1. So far, far the second year running, the deadline has been extended from April 30 till May 31. This might be the third year running, or perhaps this happen every year, but I’ve only been watching this year and last. A little odd, as it is hard to imagine a reason to extend that they couldn’t have foreseen, but Welcome To Israel, I guess..
2. Unfortunately, I did not photocopy my Doch Return form from last year, or at least I cannot find it:-), as having it with the questions I had might have made things easier for me this year. The good news is that it ended up being not that hard at all anyway.
3. Here are the questions that I wrote down and got answered by Zehava when I went for the guidance hours:
Line 3: What is the sum that my wife reports (her Tofes 106 has a whole bunch of numbers)
Sections Daled through Yod: Need I cross out the fields that I do not have to fill out?
Line 43: Is this relevant for my wife?
Line 45: Is this relevant for me?
Line 62: Is this relevant for my wife and me?
Line 67: Donations – need I bother submitting?
Line 69: I live in Maale Adumim – is this relevant?
Line 70: Is this relevant for my wife and me or just for me?
Line 71: What do I report for my wife, and is this relevant for me (I did some work during the national elections for a party, they said the 25% tax [ouch!] is definitely non-refundable)?
No line: Need I complete form 1320?
4. The answers:
Sections that I do not need to fill out do not need to be crossed out – don’t bother.
The lion’s share of my questions dealt with my wife’s tofes 106. (Lines 3, 43, 44, 49, 50, 64, 71). Here is the solution, which would have saved me a lot of time with Zehava, and will save you time:
Every line on the Doch Shnati form has a field, often two (for the filer and for his/her spouse). Each field has a code number clearly associated with it. For example, line question 43 has field code 218 for the filer and 219 for the spouse.
NOW, look at the Tofes 106 – every relevant line has a Mem Heh code associated with it. Guess what – that Mem Heh stands for Mas Hachnasa! And guess what – those code numbers match the code numbers on the Doch Shnati form that I discussed in the last paragraph! So all you have to do is connect the dots. Every line in your spouse’s Tofes 106 that has a Code Mem Heh in it, find the identical code on the Doch Shnati, and copy the sum on the Tofes 106 belonging to that code number into the associated field on the Doch Shnati. Simple and fun as that!
I hope this is as clear as it is to me.
The only other questions I had:
Line 45: my Bituach Leumi payments: well, since I know I am below the minimum, I know my payments are about 100 NIS a month. Zehava wasn’t too worried about my reporting the exact total of my payments to Bituach Leumi, so I just wrote down 1300 (one month for good luck). YMMV – you should look this up in preparation for filling out the Doch Shnati and get it exact.
Line 62: Bituach Hayyim Life Insurance: I will find the annual reports I get from the companies that send me for my wife’s and my policies, I expect that there will be a Mem Heh code on those pages too, at least it shouldn’t be too difficult to figure out what numbers go in these fields. As with the philanthropic donations below, this information should result in a tax refund!
Line 67: Charity donations: find all the receipts of donations to Malkarim (NPOs) that say “mukar letzarkei mas hachnasa” and submit them in the original, you evidently get a third back if you have donated more than 400 NIS this year. (if you donated less than about 10% of your income, you should consider upping your donations. Thus spake your conscience:-)
Line 69: Maale Adumim is not a special area, probably just Sderot and Kiryat Shmoneh, but YMMV. Couldn’t hurt to fill out if you think it might be helpful.
Line 70: I just copied from Line 1 – my reported income (sum total of all receipts issued as reported in my receipt book). Form 1320 is a worksheet that helps you clarify your deductions (like transportation, office supplies, etc. – expenses needed to generate income). Since I knew my gross income before deductions was low enough to report as is without calculating deductions, I just did that. Hopefully next year I will happily fill out form 1320:-).
Line 71: In fact, the 25% tax paid on work for political parties is unrefundable. Ouch indeed.
SO… My action items are:
1. find those Life Insurance annual receipts and enter the relevant number in fields 036 and 081, Line 62.
2. Find all my charity receipts and enter the relevant number in fields 037 and 237, Line 67.
3. Complete my personal details in the Yesh Lershom Pratim Adkaniim box (the third section on Page 1). Zehava had kindly pasted my sticker in the section above this.
4. Complete the Bank Details on Line 76, so they can deposit my refund (yay).
5. Submit the Doch with spouse’s Tofes 106, Life Insurance original receipts, charitable donations original receipts, and tofes 1320, to the Information Window at mas Hachnasa, 216 Rehov Yaffo, sixth floor. Get it stamped and get a Meushar certified copy.
6. Do all this before June 1.
PS I see that last year’s entry might be helpful too:
Here’s a site/page that looks good too:
PS from this page: https://atzmai.wordpress.com/2008/06/26/bituach-leumi-take-two/ I learned that I am actually probably paying 148 NIS a month to Bituach Leumi. I should review this blog more often!