Households with only earned income can apply for up to 1.15 million won in Earned Income Tax Credit until September 15. The National Tax Service (NTS) plans to send notifications to 1.3 million eligible households and will distribute the credits after review on December 17.
The NTS announced on September 1 that it will accept applications for the first half of 2026's Earned Income Tax Credit from September 1 to 15.
Eligible applicants are households with only earned income for both the individual and their spouse during the first half of this year. Households with business income or income from religious activities must apply during the regular application period in May next year.
Among the eligible households, 864,000 are single-person households, 386,000 are single-income households, and 54,000 are dual-income households. The largest group by age is those aged 70 and older, totaling 492,000 households.
Applicants for the first half will receive 35% of their estimated annual amount on December 17. The maximum payment is 1.15 million won, with the remainder adjusted based on annual income and assets in June next year.
If the payment is less than 150,000 won or if a refund is anticipated, it will not be paid in December but will be determined after review in June next year. By applying for the first half, there is no need to separately apply for the second half in March or the regular application in May next year.
The income criteria for eligibility are as follows: for single-person households, a combined income of less than 22 million won; for single-income households, less than 32 million won; and for dual-income households, less than 44 million won. Additionally, the total assets of all household members must be less than 240 million won as of June 1 of last year.
If the total assets are between 170 million won and 240 million won, only 50% of the estimated amount will be paid. Debts are not deducted from the asset total.
Of the 1.3 million households notified, 720,000 had previously consented to automatic applications by March, completing the application process without additional steps. The results of the automatic applications can be checked through the National Information Service, Home Tax, and automated response systems.
If applicants consent to automatic applications this time, they will not need to apply separately until May 2029 for the regular application for the 2028 tax year, provided they meet the eligibility requirements.
Applications can be submitted through the 'Apply Now' banner in mobile notifications, QR codes in mailed notifications, automated response systems, or Home Tax. If direct application is difficult, assistance can be requested from the Earned Income Tax Credit Consultation Center.
Even if a notification is not received, individuals who believe they meet the income and asset requirements can apply directly through Home Tax by attaching proof such as an income verification certificate from their workplace.
If an application is not submitted by September 15, it can still be made during the application period for the second half in March or the regular application in May next year to receive 100% of the estimated amount. If the regular application period is missed, late applications can be submitted until November 30 next year, but the payment will be reduced to 95% of the estimated amount.
The government plans to include in this year's tax reform proposal an expansion of income requirements and maximum payment amounts for the Earned Income Tax Credit starting from the 2027 tax year. The maximum payment is expected to increase to 1.8 million won for single-person households, 3.1 million won for single-income households, and 3.6 million won for dual-income households.
The NTS has warned that it does not require payment of fees, money transfers, or account passwords during the application process, urging caution against financial scams impersonating Earned Income Tax Credit applications.
* This article has been translated by AI.
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