【Deadline Approaching for Post-Deadline Earned Income Tax Credit Applications】

Lee, who works the night shift part-time at a convenience store in Gangseo District, Seoul, let the regular application period for the Earned Income Tax Credit (EITC) last May simply pass by. Months went by without even enough time to look over pay stubs, and it was only after a coworker belatedly told him "it's not too late" that he logged on to the National Tax Service's Hometax system.

'Post-deadline application' is a system designed for workers and business owners who missed the regular application period. Because this window, open since early June, involves filing later than the regular application, the payment amount is partially reduced, but a considerable number of households use it every year on the judgment that it is better than receiving nothing at all.

However, this window is not open indefinitely. As late October arrives, the deadline draws near, and once the end of November passes, the acceptance of applications closes completely under relevant laws and regulations. For those who have been putting off applying, the remaining time has visibly shrunk.

【Separate 'Half-Year Application' Opens at the End of This Month】

From the end of the same month, a new application window also opens. It is the 'half-year application,' targeting workers with earned income only. Applications for first-half earned income will be accepted starting in early September, and this is a separate procedure from the post-deadline application.

There is a point of caution here. Households with business income or clergy income mixed in alongside earned income are not eligible for the half-year application and must apply only through the regular application. Every year, cases recur in which applications are rejected outright because applicants misunderstand this distinction. In addition, if the half-year application period is missed, there is no pathway, unlike the post-deadline application for the regular application, to belatedly file for the half-year portion separately.

【Dual-Income Households Need to Recheck Relaxed Income Criteria】

There have also been changes to the household income criteria. In particular, as the income threshold for dual-income households has been relaxed compared to previous years, dual-income households that were disqualified last year by a narrow margin now need to verify their eligibility again this year. Quite a few people still jump to conclusions, thinking, "It didn't work last year, so it won't work this year either."

【Apply via Hometax or Sontax... Check in Advance Whether Account Transfers Are Restricted】

The application method is not greatly different from the regular application. After logging into Hometax or the Sontax app, users simply verify their income and asset information in the tax credit-related menu and enter their bank account. Since a substantial portion of income and asset data is automatically retrieved through the National Tax Service's linkages with the National Health Insurance Service, the Ministry of Land, Infrastructure and Transport, and other agencies, there is little need to prepare separate documents. However, accounts under garnishment or certain accounts at savings banks and internet-only banks may have transfer restrictions, so it is safer to check in advance.

【3 Things to Check Before Applying】

The variables to check going forward can be summarized in three points.

① Depending on whether one has only earned income or mixed business income, review again which option to use: the half-year application or the regular application. ② Dual-income households should verify whether the relaxed income criteria actually apply to their own household through the Hometax eligibility inquiry. ③ As the deadline for post-deadline applications approaches, workers and business owners who have been postponing their applications should complete their submissions within the remaining period, as this is the way to reduce the deducted portion.

[This article was written for the purpose of providing policy information. Actual application eligibility and payment may vary depending on household composition and income and asset circumstances, so it is necessary to confirm accurate details through the National Tax Service's Hometax or your local tax office. AI assisted in part.]