Today, we will learn about the 2024 work incentive application, conditions, and period. The Earned Income Tax Incentive is a system that provides cash support to low-income workers and business owners who are working but are experiencing financial difficulties. It is a policy that provides financial support at a time when many people are having a hard time due to the continued rise in prices.
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 2024 Earned Income Tax Credit standards, application period, and application method, and if you meet the eligibility requirements, we hope you can apply and receive the benefits.
work incentives
The work incentive is a system that supports workers whose income and assets are ‘less than a certain amount’ rather than more than a certain amount, business owners excluding professionals, and religious households.
Many people are eligible to apply, but many are unable to do so because they do not know. So, I would like to find out about work incentives. We will provide detailed information on regular and semi-annual applications, so if you are eligible, please apply.
Work incentive payment method
There are two types of work incentive payment methods: regular application and semi-annual application.
Regular application
You only need to apply once, and 100% of the work incentive will be paid on the payment date. Even if you miss the application period, you can still apply and receive it later because the ‘post-deadline application period’ runs until November.
However, if you apply after the deadline, only 90% of the work incentive will be paid.
semi-annual application
You must apply separately for the first and second half of the year. Applicant and spouse’s income must consist only of earned income. If you have income other than earned income, you cannot apply.
If you are eligible to apply, you can pay only 35% of the work incentive you should receive in the first half of the year and receive the remaining work incentive in the second half of the year. You cannot apply for semi-annual applications if you miss the application period.
Standards for work incentives
Work incentives can be received when all household member, income, and property conditions are met. Only income from employment, business, or religion is recognized, and you cannot apply for a work incentive if any of the following applies.
If you do not currently possess Korean nationality
If you are a dependent child of another resident in 2023
If the resident, including the spouse, is engaged in a professional business
If the resident, including the current spouse, is a regular worker who continues to work and the average monthly salary is more than 5 million won
Conditions for applying for work incentives
household member
single-family household
Households without a spouse, dependent children, or direct ascendants over 70 years of age
Single income household
Households where the spouse’s total salary is less than 3 million won and there is no spouse, dependent children, or direct ascendants over the age of 70
Two-income household
Households where the total salary of the applicant and spouse is more than 3 million won each
income
Annual income of household members: Single-income household: less than 22 million won; Single-income household: less than 32 million won; Double-income household: less than 38 million won.
property
The total assets of household members are ‘less than 240 million won’
Work incentive amount
Amount paid to household members (maximum) Single-income households: KRW 1.65 million; Single-income households: KRW 2.85 million; Double-income households: KRW 3.3 million
Work incentive application period
Form Period Regular application May 1 – May 31 Application after deadline June 1 – November 30 Application for the first half of the year September 1 – September 15 Application for the first half of the year (second half of the year) March 1 – 3 15th of the month
Work incentive payment date
Method Payment schedule application Late August Application for general term (first half) Late December Application for general term (second half) Late June
How to apply for work incentives
To apply for a work incentive, you can easily apply by receiving an application guide and entering your individual authentication number on the Hometax website or by phone as explained in the guide. Also, even if you did not receive the application notice, if you meet the eligibility conditions, you can apply by verifying your identity on the website.
How to apply by phone for ARS (1544 – 9944)
Make a call, select the incentive, enter your resident registration number and individual authentication number, agree and apply. After applying, follow the instructions and confirm your contact information and account number to complete the application.
👇 Go to Sontax (Android)
👇Go to Sontax (iPhone)
Recommended work incentive savings account
There are various types of earned income tax savings accounts, and you can sign up for the product that offers the most benefits to you. Savings products for recipients of earned income tax incentives include the following products.
KB National Happiness Savings: 1 year, 6.45%, 500,000 won
NH Hope Filling Account: 3 years, 5.15%, 500,000 won
JB Happy Dream Savings: 3 years, 4.75%, 500,000 won
Stepping Stone Savings: 1 year, 6.4%, 300,000 won
Please note that when signing up, you may also be required to issue other documents, such as a certificate of receipt of work incentives and an ID card.
Things to keep in mind when applying for work incentives
If there is a national tax arrears, up to 30% of the refund amount will be covered by the arrears. If you have overdue taxes, it is a good idea to calculate them in advance and make a plan.
If assets are between KRW 170 million and less than KRW 240 million, only 50% of the earned income tax 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.
finish
Today, we learned about the application, conditions, and period for the work incentive. If you meet the conditions, we hope you will refer to it, apply, and receive the benefits.
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