Notification of Earned Income and Child Tax Credits to 3.98 Million Households... Apply by Phone or Hometax by the 31st

Households that applied in September last year or March this year are not eligible
Application windows closed due to COVID-19... Separate support services for disabled and those over 65

[Sejong=Asia Economy Reporter Kim Hyunjung] The National Tax Service announced on the 3rd that it sent guidance letters to 3.98 million households with earned or business income last year, encouraging them to apply for the Earned Income Tax Credit and Child Tax Credit. Even if you are not a target for the guidance, you can apply if you meet the application requirements by calling the Hometax system or the tax office. However, households that chose the semi-annual system and applied last September or this March are excluded from this application period.

The application period is from the 1st to the 31st of this month, and the review will be expedited to make payments by the end of August. This is about a month earlier than the statutory payment deadline of September 30.

For the earned and child tax credits based on last year's income, households that meet both income and property requirements according to household composition are eligible to apply. For dual-income households, up to 3 million KRW is paid, and the child tax credit is up to 700,000 KRW per child.

The earned and child tax credits are paid per household, so only one person per household can apply. Households are classified as single, single-earner, or dual-earner depending on the presence of a spouse or dependents. For households with earned, business, or religious income in 2020, and based on dual-income households, the combined annual income of the couple must be between 6 million KRW and less than 36 million KRW for the earned income tax credit, and between 6 million KRW and less than 60 million KRW for the child tax credit. Regarding property, the total assets of all household members as of June 1 last year?including real estate, jeonse deposits, cars, and savings?must be less than 200 million KRW, and debts are not deducted.

If you received the application guidance letter, you can apply by following the voice guidance through the automated response system, or through the Sontax app by installing the app → Earned Income and Child Tax Credit application → Apply → Authenticate with individual certification number or mobile phone. The Hometax chatbot consultation service is also available. Due to the impact of COVID-19, in-person counters are closed, but if persons with disabilities or those aged 65 or older have difficulty applying by phone, they can receive application assistance by calling the Earned Income Tax Credit Counseling Center or the tax office.

Applicants must verify their eligibility themselves, and if they apply with false information intentionally or through gross negligence, the credit will not be paid for two years. You must enter the refund account number and contact information, and complete the final comprehensive income tax return. The applied amount and the actual payment may differ; if the total property value is between 140 million KRW and less than 200 million KRW, only 50% of the credit is paid, and if there are outstanding tax arrears, up to 30% of the payment amount will be used to offset them before payment.

If someone impersonates tax office or counseling staff and asks for account passwords, card numbers, internet banking information, or other details under the pretext of applying for the tax credit, report it to the tax office or police. Tax office and counseling center staff do not request such information.

This content was produced with the assistance of AI translation services.