If You Apply for the Earned Income Tax Credit by the 15th, 'An Average of 882,000 KRW Will Be Paid by the End of June'

[Asia Economy Sejong=Reporter Kim Hyewon] Households eligible for the second half of last year's Earned Income Tax Credit (EITC) can apply by phone or through Hometax by the 15th to receive the payment by the end of June. With the income criteria for EITC payments raised this year, the number of eligible households has increased by 250,000 to 1.25 million compared to the same period last year.

On the 2nd, the National Tax Service announced that it will send mobile and postal notifications to 1.25 million eligible recipients of the second half EITC.

When applying for the semi-annual EITC, the Child Tax Credit is automatically applied as well. If the first half was applied for in September last year, it is considered that the second half has also been applied for, so there is no need to apply again this time.

The second half EITC is paid by deducting the amount paid in December last year for the first half from the annual calculated EITC amount. The National Tax Service estimates the average expected payment for applicants of this second half EITC to be 882,000 KRW.

If the first half EITC was not applied for in September last year, the applicant will receive both the first and second half payments this June.

Until last year, the first half EITC (35%) was applied for in September and paid in December, and the second half EITC (35%) was applied for in March and paid in June, with cases of reclaiming additional payments during the annual income settlement process in September.

Starting this year, the process of applying in September and paying in December for the first half, and applying in March and paying in June for the second half will continue, but the annual income settlement will be moved up to June, eliminating cases of 'giving and then taking back' support funds. If an overpayment is confirmed during the settlement, it will be reclaimed from the EITC payments over the next five years.

From this year's applications, the total income criteria for EITC have been raised by 2 million KRW, increasing the number of eligible households by 250,000. The total income criteria have been adjusted as follows: single-person households from 20 million KRW to 22 million KRW, single-earner households from 30 million KRW to 32 million KRW, and dual-earner households from 36 million KRW to 38 million KRW.

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