National Tax Service Applies Automatic Application for Earned Income Tax Credit from First Half of This Year
From now on, elderly individuals aged 65 and over and persons with severe disabilities can receive the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) without going through separate procedures, as long as they agree to automatic application once initially.
On the 12th, the National Tax Service (NTS) announced that it will apply automatic application for the first time starting with the application for the first half of 2023 EITC in September to facilitate the application process for elderly and disabled persons.
If elderly or severely disabled applicants eligible for the credits agree to automatic application, their applications will be completed automatically without separate procedures if they qualify within the next two years. When they receive the automatically applied credits, the effect of the automatic application consent is extended by two years. By agreeing only once initially, subsequent applications will be made automatically.
This system, introduced in March, was designed to eliminate the inconvenience of elderly persons aged 65 and over and persons with severe disabilities (including household members) having to apply for credits every year and to prevent missed applications. It was selected as an exemplary case of proactive administration by the NTS. Among the 250,000 people who agreed to automatic application in March, 110,000 who qualified for the first half of 2023 application in September had their applications completed on September 1. The 440,000 who agreed in May will have their credits automatically applied without separate procedures if they qualify for the 2023 regular application in May next year.
The 520,000 new candidates for automatic application consent in September will have their credits automatically applied if they agree by September 15 and qualify within the next two years.
However, even if automatic application is made, the amount of credit paid may vary or may not be paid depending on the eligibility review results based on the total amount of financial assets and other properties collected after the application for the applicant and household members.
To facilitate credit applications for elderly persons participating in senior jobs, the NTS has enabled nearby senior job institutions such as local governments and Senior Clubs to provide guidance on credit applications. Also, during the application period, to prevent applicants from misunderstanding and not applying due to voice phishing, advertising text messages (spam texts) containing the word "credit" that are not from the NTS sender number are blocked in real time.
Meanwhile, to stabilize the livelihood of working low-income earners, the NTS paid the regular EITC more than a month earlier than the legal deadline on the 29th of last month, before the increased demand for funds during the Chuseok holiday. The first half of the year EITC to be applied for this time will also be paid as early as possible after a prompt review.
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