"Apply for 'Earned Income Tax Credit and Child Tax Credit' by the End of This Month"… Proxy Application Support for Typhoon and Sanbul Disaster Victims
by Ju Sangdon
Published 02 May.2023 12:00(KST)
National Tax Service Sends Application Notices to 3.1 Million Households with Income from Work, Business, or Religious Activities in 2022
10% Reduction in Incentive Payment if Not Applied
Relaxed Asset Requirements and 10% Increase in Maximum Payment Starting This Year
The National Tax Service (NTS) announced on the 2nd that it will send regular application notices for the Earned Income Tax Credit and Child Tax Credit to 3.1 million households with earned income, business income, or religious income in 2022 within 2 to 3 days. For residents affected by typhoons and wildfires, NTS counselors will proactively call them to assist with the application process.
The application period is until the 31st of this month. The NTS plans to review eligibility based on income and assets and make payments by the end of August this year. Applications can still be submitted until November 30 if missed by the deadline, but in such cases, the credit amount will be reduced by 10%.
To provide fast and accurate consultation services, the NTS will operate a dedicated consultation center for the tax credits with 241 counselors, an increase of 31 from the same period last year.
Among the targeted applicants, 140,000 households in areas declared special disaster zones due to Typhoon Hin Nam No in September last year and wildfires in April this year will receive proactive calls from counselors by the end of May to assist with their applications.
For this regular application period, 520,000 households, including elderly applicants, are eligible for automatic application consent to facilitate the process. If they consent to automatic application, the credits will be applied automatically if they qualify for the next two years.
Starting from this year’s applications, the asset requirements for the Earned Income Child Tax Credit will be relaxed. The total household asset limit will be expanded from under 200 million KRW to under 240 million KRW. Additionally, the maximum payment amount will be increased by 10% to enhance economic support for working low-income households.
The total number of eligible households for the 2022 tax year is 5.48 million, with 4.99 million households receiving the Earned Income and Child Tax Credits last year, totaling 50 trillion KRW.
Meanwhile, during the application period for the Earned Income and Child Tax Credits, the NTS has coordinated with the Korea Internet & Security Agency and mobile carriers to block spam messages containing terms like 'Earned Income Tax Credit' and 'Child Tax Credit' if they are not sent from official NTS numbers, in order to prevent fraud calls related to loan advertisements and other scams.
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