Households that missed the regular application period for the Earned Income and Child Tax Credits in May must submit late applications by November 1. After this deadline, they will no longer be able to apply for credits based on 2025 income.
The National Tax Service announced on November 2 that it will send notifications to 260,000 households that have not yet applied for the 2025 Earned Income and Child Tax Credits. This year, the notifications will also include an additional 10,000 households identified through a reanalysis of income data collected after the May application period, aimed at those who may have missed the regular application due to delayed income reporting from their employers.
To qualify for the Earned Income Tax Credit, a single household must have a combined income of less than 22 million won, while a single-income household must earn less than 32 million won, and a dual-income household must have an income below 44 million won. Households eligible for the Child Tax Credit must have dependent children under 18 and a combined income of less than 70 million won.
Both credits require that the total assets of all household members be below 240 million won as of June 1 of the previous year. When calculating assets, debts are not deducted. Households with assets between 170 million won and 240 million won will receive only 50% of the calculated amount.
Before any reductions, the maximum amounts for the Earned Income Tax Credit are 1.65 million won for single households, 2.85 million won for single-income households, and 3.3 million won for dual-income households. The Child Tax Credit ranges from a minimum of 500,000 won to a maximum of 1 million won per dependent child.
Late applications will incur a 5% reduction, meaning recipients will receive 95% of the calculated amount. The National Tax Service plans to review income and asset information and issue payments by January 15 of next year. Even if a household receives a notification and applies, they may be excluded from payment or receive a different amount based on the results of the review.
Applications can be submitted using the QR code on the mailed notification, the application feature on mobile notifications, or through an automated response service. Households that did not receive a notification but meet the requirements can apply directly through the Home Tax website by attaching proof of income. Those who have difficulty using mobile or PC can seek assistance from the tax credit consultation center.
Even if individuals are currently retired, they may still qualify if they had earned income, business income, or religious income last year. Young people who have had temporary income from part-time or daily work should also verify their income and asset eligibility.
Meanwhile, the government is working on a tax reform proposal to expand the Earned Income Tax Credit program starting with the 2027 tax year. The proposal includes increasing the maximum payment amounts to 1.8 million won for single households, 3.1 million won for single-income households, and 3.6 million won for dual-income households, while also relaxing the income requirements to below 26 million won, 37 million won, and 52 million won, respectively.
* This article has been translated by AI.
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