As the standards for employment incentives expanded in 2024, the number of applicants has increased. In this post, we will take a closer look at the standards, application period, and application method for the earned income tax credit, including the 2024 child tax credit, so please read carefully and, if you meet the eligibility requirements, be sure to apply and receive the benefits.
What is an employment incentive?
The work incentive is a support system to encourage the work motivation of small-scale self-employed people and low-income workers who earn little despite their work and to help stabilize their lives. Since its inception in 2009, the scope of application and payment amount has been gradually expanding.
Work incentives are provided by calculating the payment amount based on income according to the composition of household members, and households of professionals such as doctors, lawyers, and teachers are excluded.
2024 Work Incentives
Eligibility to apply for 2024 work incentives
The eligibility requirements for the 2024 work incentive have been relaxed, increasing the amount by 150,000 won for single-income households, 250,000 won for single-income households, and 300,000 won for dual-income households compared to last year.
In the case of child subsidies, last year, the combined income of couples was less than 40 million won, but this year, the combined income of couples was expanded to less than 70 million won, so it is expected that more people will be able to receive the benefit.
The income, asset requirements and payment amount for each household for the earned income tax incentive are as follows.
Single-family household: A household living alone without a spouse, dependent children (under 18 years of age), or direct ascendants over 70 years of age.
Single-income household: A household with a spouse or dependent child (under 18 years of age) or a lineal ascendant over the age of 70 (the spouse’s total salary must be less than 3 million won, and the annual income of a dependent child or lineal ascendant over the age of 70 is less than 1 million won) and must be a family member living together on the resident registration table.)
Dual-income households: Households where the total salary of the person and spouse is more than 3 million won each
Category Single-income household Single-income household Double-income household
Total income standard (couple of married couples) Less than 22 million won Less than 32 million won Less than 38 million won
Property requirements (combined household members) The total amount of property owned by household members, including houses, land, buildings, and deposits, is less than KRW 240 million.
Liabilities are not deducted when calculating property value (as of June 1, 2024)
Maximum payment amount: Up to 1.65 million won Up to 2.85 million won Up to 3.3 million won
※Total income: Earned income (total salary amount), business income (total income amount This is the amount.
2024 child subsidy standards and payment amount
The child subsidy is a system to help low-income households raise children, and has the same eligibility requirements as the earned income subsidy, except for the total income standard.
Category Single-income household Single-income household Double-income household
Total income standard (couple of married couples) Not applicable Less than KRW 70 million
Maximum payment amount: 1 million per child
2024 Employment Incentive Application Period
Salary earners can choose to apply between regular and semi-annual applications, but business income earners and religious people can only apply on a regular basis. Regular applications can be applied in May, and semi-annual applications can be applied in March and September. Those who have missed the regular application among wage earners can apply in August and March of the following year.
For regular applications, payment is made by the end of August, and if you apply after the deadline, payment is made within 4 months of application. For the first half of the year, 35% of the amount calculated in December is paid, and the remaining half of the amount is paid at the end of June of the following year.
Classification Regular application Semi-annual application
(Income for the first half of 2023) Semi-annual application
(Income for the second half of 2023) Semi-annual application
(Income for the first half of 2024)
Application period May 1 – 31, 2024 September 1 – 15, 2023 March 1 – 15, 2024 September 1 – 15, 2024
Income standard Total income in 2023 Income from January to June 2023 Income from July to December 2023 Income from January to June 2024
Payment period Late August – September 2024 Paid in December 2023 Sometime in June 2024 Paid in December 2024
Comparison Working/Business/Religious Income Earner Salary Income Earner
What if I missed the regular application in May? (Application after the deadline)
Those who missed the regular application in May can still apply. You can apply after the deadline, and you can apply from June to the end of November. However, 90% of the payment amount is possible. However, if you have discovered something you missed, please apply quickly to receive the benefits. Of course, if you are a wage earner, you can also apply semi-annually.
Apply after the classification deadline (if you missed the regular application in May)
Application period: June 1, 2024 ~ November 30, 2024
Based on income, total income in 2023
3 months after application due date
How to apply for work incentives in 2024
1. If you have received an application notice (if you have received an individual authentication number)
If you have received an application guide and have an individual authentication number, you can apply by phone or through the Hometax website. If you receive a written notice, scan the QR code on the notice to access the application right away.
– How to apply by phone for ARS (1544 – 9944)
Make an ARS call → Incentive number 1 → Resident registration number 13 digits → Individual authentication number (enter 8 digits) → Agree and apply number 1 → Check contact information and account number → Application complete
– How to apply for Hometax website (PC, mobile app)
Log in to Hometax → Apply/Submit → Apply for work/child incentives → Enter the last digits of your resident registration number and 8 digits of your individual authentication number → Check application requirements → Check contact information and account number → Complete application
National Tax Service Hometax
www.hometax.go.kr
2. If you did not receive the application notice
Even if you haven’t received the application notice, if you meet the eligibility requirements, apply on the Hometax website!
Log in to Hometax → Apply/Submit → Apply for work/child incentives → Verify your identity (provide necessary documents such as household member details, income data, etc.) → Verify income/properties/Register contact information/account number → Complete application
3. Application agent (Weekdays 9:00 a.m. to 6:00 p.m., excluding Saturdays, Sundays, and public holidays)
If you find it difficult or difficult to apply for various reasons, please consult by phone at the Incentive Counseling Center (1566 – 3636). If you still have difficulty, a counselor at the Incentive Counseling Center or a tax office employee can apply on your behalf with the consent of the recipient, so please be sure to provide assistance. Please receive it.
Apply for home tax work incentives
How to apply for Hometax work incentives (Source: Hometax homepage)
Things to keep in mind when applying for 2024 work incentives
If there is a national tax arrears, up to 30% of the refund amount will be covered by the arrears. Those who are behind on taxes should know in advance. You will have to pay taxes anyway, but you need to know the deduction amount and make a plan.
If the total assets are between KRW 170 million and less than KRW 240 million, only 50% of the work incentives and child incentives are paid.
When applying for a semi-annual payment in December, only the employment incentive is paid first, and if the child incentive is applicable, it is also paid at the time of settlement in June of the following year.
If you have any questions about the status of your earned income tax credit screening, you can visit the Hometax website and select “Check screening progress status” to check.
We took a detailed look at the 2024 work incentive and child incentive eligibility conditions and how to apply. Please check it out carefully and be sure to receive the benefits if you are eligible.