National Tax Service to Distribute 3 Trillion Won in Earned Income and Child Tax Credits... Average 1.08 Million Won per Household

Earned Income and Child Tax Credits for 2024
To Be Paid One Month Earlier Than the Statutory Deadline, on August 28

The National Tax Service announced that it will pay the '2024 Regular Earned Income Tax Credit and Child Tax Credit' on August 28, one month earlier than the statutory deadline of September 30.

This round of regular Earned Income Tax Credit and Child Tax Credit will be distributed to 2.79 million households that applied for the credits in May this year, are residents with earned, business, or religious income, and meet the income and asset requirements. The total amount to be paid is 3.01 trillion won. Of this, the Earned Income Tax Credit will be paid to 2.08 million households, totaling 2.316 trillion won, and the Child Tax Credit will be paid to 710,000 households, totaling 694.3 billion won. The average payment per household is 1.08 million won.

By age group, among recipients of the regular Earned Income Tax Credit, those in their 20s or younger account for 630,000 households (30.3%), followed by those aged 60 or older participating in senior jobs with 520,000 households (25.0%). By household type, single-person households make up the largest share, with 1.44 million households (69.2%).

From this year, the income requirement for dual-income households to receive the Earned Income Tax Credit has been relaxed from less than 38 million won to less than 44 million won, resulting in 160,000 dual-income households benefiting from the credit, an increase of 40,000 households compared to the previous year. For the Child Tax Credit, by age group, those in their 40s with more dependent children account for the largest share with 340,000 households (47.9%), and by household type, single-income households, which generally have lower incomes compared to dual-income households, make up a larger proportion with 470,000 households (66.2%).

By income type, business income households (2.11 million households, 75.7%) account for the largest share since they can only apply during the regular application period, while earned income households (660,000 households, 23.6%) can choose between regular or semi-annual applications, resulting in a relatively lower proportion compared to business income households.

The credits are paid either by bank transfer or in cash, depending on the payment method selected at the time of application. If cash payment was requested, recipients can collect their credits at a nearby post office by presenting the National Tax Refund Notice sent by registered mail along with their identification card.