National Tax Service Sends Guidance Letters to 1.05 Million Households
The National Tax Service announced on March 2 that it will accept applications for the Earned Income Tax Credit for the second half of 2025 until March 16, in order to encourage work among low-income households and actively support the recovery of the people's economy.
The National Tax Service has sent out guidance letters to 1.05 million households with only earned income in 2025. The tax credit applied for will be reviewed based on requirements such as income and assets and is scheduled to be paid on June 25.
However, if a household has both earned income and either business or religious income in 2025, applications must be submitted during the regular application period from May 1 to June 1. A guidance letter for this regular application will be sent to eligible recipients in May.
Eligible applicants will receive notification by mobile or mail. Applications can be easily submitted by clicking 'Apply' in the mobile guidance, scanning the QR code on the written notice, or using the automated response service (ARS). If elderly applicants or others have difficulty applying directly via mobile or PC, they can receive assistance from the Earned Income Tax Credit Consultation Center. Even if one does not receive a guidance notice, if the applicant believes they meet the income and asset requirements, they may apply directly through Hometax.
To alleviate the inconvenience of annual applications and prevent omission, the National Tax Service has expanded the 'Automatic Application System' to all age groups starting with the 2025 tax year. Of the 1.05 million households eligible for second-half guidance, 200,000 households who previously gave prior consent for automatic application have been automatically enrolled for the second-half tax credit. If an applicant for the second half gives prior consent to automatic application, their application will be automatically submitted for the regular period of the 2027 tax year (May 2028), provided they meet the eligibility requirements.
For semi-annual applications, the Earned Income Tax Credit payment ranges from 30,000 won, up to 1.65 million won for single-person households, 2.85 million won for single-earner households, and 3.3 million won for dual-earner households. The estimated payment amount, available through Hometax, ARS, and the consultation center, is calculated based on data held by the National Tax Service and may change or be excluded from payment depending on the review results of income and asset requirements.
In addition, among applicants, households with children under 18 who qualify for the Child Tax Credit will receive up to 1 million won per child, paid together with the Earned Income Tax Credit. However, if a child tax deduction was already received during year-end tax settlement, the amount will be reduced from the Child Tax Credit.
For those who applied in the first half (September 2025), there is no need to apply separately for the second half. When paying the second-half portion, the amount paid for the first half will be deducted from the annual total. If the annual total is less than the amount paid in the first half, the difference will be recouped from the Child Tax Credit or from future Earned Income and Child Tax Credit payments over the next 10 years.
A National Tax Service official stated, "The National Tax Service operates the Earned Income Tax Credit Consultation Center year-round to provide prompt and accurate assistance," and added, "NTS staff will never request payment of fees, money transfers, or account passwords. Please be wary of financial scams impersonating Earned Income Tax Credit applications."
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