Guidance for Semiannual Application of Earned Income Tax Credit for 980,000 Households... Application Period Extended by 15 Days Due to COVID-19

[Asia Economy Reporter Kwangho Lee] The application period for the semi-annual Earned Income Tax Credit (EITC) for low-income workers has begun. This year, due to the spread of the novel coronavirus disease (COVID-19), the application period has been extended by 15 days.

The National Tax Service announced on the 2nd that it sent application guidance letters to 980,000 low-income households with earned income in the second half of 2019.

By household type, there are 670,000 single-person households (68.0%), 280,000 single-earner households (28.7%), and 30,000 dual-earner households (3.3%). Among the recipients, 530,000 households aged 40 or younger were notified via mobile, and 450,000 households aged 50 or older were notified by mail.

If you did not receive the guidance letter, you can check your 'eligibility status' and 'individual authentication number' through ARS phone service, the Hometax mobile app, or the Hometax website.

The National Tax Service plans to accept applications this month, conduct reviews, and make payments in June. If you miss this application, you can apply in May (regular application) and receive payment in September.

In particular, considering that the COVID-19 infectious disease alert level is at the severe stage this year, the application period has been extended from the original May 1?16 to May 31.

Additionally, to prevent the spread of the infectious disease, a temporary non-face-to-face application method that does not require visiting the tax office has been added.

The eligibility for the Earned Income Tax Credit is for residents with earned income only, whose combined spousal total income is below the standard amount (20 million KRW for single-person households, 30 million KRW for single-earner households, 36 million KRW for dual-earner households, etc.), and whose total household assets are less than 200 million KRW.

The maximum payment amounts are 525,000 KRW for single-person households, 910,000 KRW for single-earner households, and 1,050,000 KRW for dual-earner households.