Income tax exemption from maternity benefit
The Supreme Court, in a ruling of October 3, 2018, has ruled that public maternity benefits received from Social Security are exempt from personal income tax.
Until now, mothers who received the Social Security maternity benefit had to include it in their income tax return as income from work and therefore paid taxes on said benefit.
The Supreme Court considers in this ruling that the maternity benefit received from Social Security can be included in the case provided for in the third paragraph letter h of article 7 of the Personal Income Tax Law, when it provides that “other public benefits will also be exempt for birth, multiple birth or adoption, adoption, dependent children and orphanhood.”
Thus, mothers who have had children between 2014 and 2017 may have the right to have the Treasury refund the amounts paid in excess or return the amounts that were not paid to them in the return of their income tax return.
At Tax&Law Consulting we study your case and prepare the necessary documentation to request a refund of the amount you are entitled to receive.