The regular disbursement of the 2025 second-half Earned Income and Child Tax Credits has been completed. Those who missed the regular application period can submit a late application by December 1.

■ Payment Status as of June 25 On June 25, the National Tax Service (NTS) paid a total of 1.8087 trillion won in Earned Income and Child Tax Credits to 1.92 million households with only earned income. Of this, the Earned Income Tax Credit amounted to 1.6475 trillion won for 1.79 million households, while the Child Tax Credit amounted to 161.2 billion won for 130,000 households. This payment amount reflects the annual settlement of the tax credits, taking into account the first-half payment already disbursed in December 2024. For the Earned Income Tax Credit, the remaining balance—annual estimated amount minus the first-half payment—was disbursed. The Child Tax Credit was provided to eligible households at the time of the second-half payment.

■ Annual Payment Scale Based on households that received the tax credits at least once during the first or second half of the year, the total annual disbursement scale amounts to 2.04 million households and 2.3620 trillion won. Compared to the previous year, the number of recipient households decreased by 70,000, and the payment amount decreased by 47.4 billion won. The simultaneous decline in both the number of households and the payment amount for the half-year tax credits indicates a reversal of the upward trend seen in recent years. The NTS attributes the decrease in eligible households to the relatively limited changes in income and asset thresholds for eligibility compared to rising wages and prices. By household type, single-person households accounted for 1.26 million, representing approximately 70% of all Earned Income Tax Credit recipients. This is interpreted as reflecting demographic changes such as an aging population and the increase in single-person households in the composition of beneficiaries.

■ How to Receive For households that selected bank deposit at the time of application, the tax credits were deposited on June 25. Those who applied for cash receipt can collect their payment at a nearby post office by presenting their tax refund notice and a valid ID.

■ Households with Business or Clergy Income If a household member has other sources of income, such as business or clergy income, in addition to earned income, they are classified as regular-term applicants rather than half-term applicants. For these applicants, an additional review of income and asset requirements will be conducted, with payments scheduled for August 27.

■ Late Applications Households eligible for the 2025 Earned Income and Child Tax Credits but unable to apply by June 1 may submit a late application by December 1. Applications can be made via Hometax or the Automated Response Service (ARS). However, late applicants will receive 95% of the calculated credit amount after a 5% reduction, rather than the full amount. Eligibility and actual payment amounts may vary depending on the NTS review of household members' income, assets, and household composition.

The Earned Income Tax Credit is a system designed to encourage work and supplement actual income for households of workers, business owners, and clergy who meet certain income and asset criteria. The Child Tax Credit provides between 500,000 won and up to 1 million won per child to households with dependent children under the age of 18.

[Specific eligibility criteria and payment amounts may vary depending on the results of the National Tax Service review. This article was written with AI assistance.]