As the regular May application period for the Earned Income Tax Credit (EITC) comes to a close, workers are highly interested in when they will receive the payment and how much it will be. Particularly this year, due to the burden of rising prices and living costs, interest in the EITC is higher than in previous years, with questions about payment dates and amounts continuously being raised in online communities and on social networking services (SNS).

The number of households eligible for the first-half EITC application this year was estimated at around 1.14 million, and the actual number of applicants reportedly exceeded 1 million households. According to guidance materials from the National Tax Service, the EITC for the first-half income period is processed for payment after a review. At this point, it is important to note that the EITC is not a system where everyone receives the same amount simply by applying.

Recently, inquiries among applicants have been increasing, such as "Why did I receive less than my neighbor?", "My amount decreased compared to last year," and "What is the difference between a half-year application and a regular application?" This is because, during the actual review process, not only income but also household composition and asset status are comprehensively reflected. Since calculation standards vary depending on the household type—such as single-person households, single-earner households, and dual-earner households—the actual payment amount can differ based on the scale of assets and the presence of dependents, even if the income levels appear to be the same.

Looking at data from the National Tax Service, single-person households accounted for the highest proportion among those who recently applied for the EITC. In particular, applicant households headed by seniors aged 60 and over account for a significant share, showing a steady upward trend. Accordingly, evaluations suggest that the EITC system plays an important role not only for low-income workers but also in stabilizing the livelihood of the elderly, establishing itself as a social safety net beyond simple financial support.

Households that opted for the half-year application will first receive an advance payment based on their first-half income, and then go through a settlement process where it is combined with their second-half income. During this final settlement process, additional payments may be issued, or conversely, some amounts may be adjusted. On the ground, it is reported that the most inquiries occur during the waiting period for review results rather than during the application process. This is because there are quite a few cases where the expected payment amount differs from the actual paid amount after applying through Hometax and Sonotax.

Tax experts explained, "Rather than viewing the EITC as simple support, it is necessary to understand it as a tax support system that considers both income and assets. Rather than making judgments based solely on the estimated amount at the time of application, you can only find out the exact amount received by checking the final review results."

The EITC, which is operated to boost the incentive to work and support the living stability of low-income workers, is a system where the final review results are more important than the application itself. Eligibility for application can be checked through NTS notices and the Hometax system, and whether the payment is made and the payment amount are finalized based on the review results.

[This article was written based on publicly available policy guidance materials and general EITC information, and artificial intelligence (AI) technology was utilized during the writing process to draft and organize the information. The information provided in this article is intended to aid general understanding of the policy, and results may vary depending on actual policy application or individual circumstances. Since government policies are subject to frequent changes, please be sure to check the official materials from the relevant ministries. This publication bears no legal or financial responsibility for the information provided.]