May is back. May is a busy month with comprehensive income tax returns, right? But there is one more thing not to miss. Apply for work incentives! If the conditions of the application are correct, it is also a month where you can collect a lot of money along with the comprehensive income tax refund. I will tell you what conditions you need to meet and when and how to apply.
What are the work incentives?
Work incentives, as you can see from the word “working,” are systems that pay out support to people who are “working.” In particular, the system was launched to help low-income workers who are not earning much money get out of poverty, and it is also aimed at encouraging them to work. It is the so-called work-linked income support system.
So in order to apply for work incentives, income requirements are basic and there are several other conditions that must be met.
Conditions for applying for work incentives first!
First of all, the application includes not only earned income but also business and religious income among those who earn income from work. That means freelancers earning business income can apply for work incentives!
However, proof of income through comprehensive income tax return is essential because it must be proved that you are working on generating income. If you have business income and have not filed a comprehensive income tax return, you should report the comprehensive income tax first! (⭐️ ⭐ ️ ⭐ ️) You must know.
[Requirements for income]
The income standard of work incentives varies slightly depending on the household composition.
Single household: *Gross income less than KRW 22 million
Single-income households: Gross income less than KRW 32 million
Dual-income households: Gross income less than KRW 38 million
(*Gross income: Combined amount of labor, business, religious person, other, interest, and financial income)
However, even if the income requirements are met, these people will be excluded from the application.
✅ As of December 31 of last year, there are no Korean nationals
(However, it is possible if you have a Korean national spouse or child)
✅ If you are a dependent child of another resident last year
✅ A person or spouse who runs a professional business
✅ Average monthly earned income of 5 million won or more for regular workers as of December 31, 2023 including spouses
[Property requirements]
As of June 1 last year, the total property of household members was less than 240 million won
How to apply for work incentives in 2024 & how to support them
There are two types of work incentives: semi-annual application and regular application. Half-term application is literally a method of applying by dividing a year into the first half and the second half. On the other hand, regular application is a method of calculating last year’s income and applying at once a year. The regular application period for work incentives, which is calculated based on one year’s income, is now May.
[Time to apply for work incentives]
Sortation
Subject to application
Income subject to the calculation of incentives
Application period
Half-term application
an earned income earner
First half of 2023
September 1st to 15th, 2023
Second half of 2023
March 1st to 15th, 2024
Regular application
Work, income, religious income
Annual Income in 2023
May 1 – 31, 2024
However, if you missed the application period for the work incentive, you can apply after the deadline. The application period after the deadline for the work incentive is from June 1st to November 30th, 2024.
[How to apply for work incentives]
① Application for ARS phone call (on regular application)
☎️ 1544-9944 Phone > Enter resident registration number > Enter 8 digits of individual authentication number in the application guide or message > Apply in order
However, when applying through ARS, if you call your contact information registered with the National Tax Service, you do not have to enter an individual authentication number separately.
② Application for Hometax (Mobile, PC available)
If you receive an application notice: Access Hometax > Select to apply for work incentives > Enter 7 digits after the resident registration number and 8 digits for the individual authentication number > Apply for incentives (register contact information, refund account)
If you haven’t received an application notice: Access Hometax > Select to apply for work incentives > Log in after self-identification > Apply for incentives (register contact information, refund account)
③ Internet application
If a written notice is received: Apply after scanning the QR code in the notice
If you receive a mobile notification: You can apply directly from the mobile notification
④ a proxy application
If you can’t apply, you can apply by proxy. If the person agrees, you can apply through the incentive counseling center or the tax office staff. However, you can apply from 9 to 18 on weekdays, and you can’t do weekends and holidays.
In this way, you must apply for the work incentive yourself to receive it. The exception is that the elderly over 60 years old or those who are in a situation where it is difficult to apply due to severe disabilities can automatically apply only to those eligible within the next two years with their consent during the incentive application period!
👉🏻 Go to download a form related to work incentives
So how much do you give?
If you applied for a work incentive that meets these requirements, you may be most curious about when and how much incentives are paid. There is a difference in the payment date depending on the application period. In addition, there is also a difference in the maximum amount that can be paid depending on the household composition. In particular, those who applied for work incentives in the second half of last year should pay attention to the half-year payment date of the work incentive, right?
Sortation
Date of payment of work incentives
the maximum amount paid
Applications for the first half of the year
Within December 30, 2023
∙ Single-family household: KRW 1.65 million
∙ Single-income household: 2.85 million won
∙ Dual-income households: 3.3 million won
Application for the second half of the year
Within June 30, 2024
Regular application
Within September 31, 2024
(If an application is made after the deadline, payment will be made within 4 months from the date of application)
If you are curious about the progress of the work incentive review, you can also check the amount of work incentives. Access Hometax, click in the following order, and check it out.
👉🏻 Access Hometax > Incentives, Year-end settlement, and electronic donations > Apply for regular/half-year work incentives > Check the amount of work incentives in ‘Review progress inquiry’
In May 2024, I looked into my yomo about applying for work incentives.