Work and Child Incentive Payments to 3.25 Million Households This Year... Applications Accepted Until the End of This Month
[Asia Economy Sejong=Reporter Kwon Haeyoung] Low-income households with income last year can apply for the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) by the end of this month and receive the credits by the end of August.
The National Tax Service announced on the 2nd that it will send application guidance letters for the EITC and CTC to 3.25 million households with earned income, business income, or religious income in 2021.
To apply for the EITC, the combined total income of the couple in 2021 must be ▲under 22 million KRW for single-person households ▲under 32 million KRW for single-earner households ▲under 38 million KRW for dual-earner households, and the total assets of all household members as of June last year must be under 200 million KRW.
The CTC application target is single-earner or dual-earner households with children under 18 years old, and the total income must be under 40 million KRW. The asset criteria are the same as for the EITC, with the total assets of all household members as of June last year below 200 million KRW.
The credit amounts based on the EITC are ▲30,000 to 1.5 million KRW for single-person households ▲30,000 to 2.6 million KRW for single-earner households ▲30,000 to 3 million KRW for dual-earner households. The CTC amount is approximately 500,000 to 700,000 KRW per child for single-earner and dual-earner households.
The application period for the EITC and CTC is from the 1st to the 31st of this month, and credits can be received at the end of August after income and asset eligibility review. Households that applied in September last year or March this year are excluded. If unable to apply within this month, applications are possible until November, but the credit amount will be reduced by 10%.
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Applications can be made via the Hometax application or automated phone system, and detailed information can be obtained through the Credit Consultation Center.
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