The Earned Income Tax Credit (EITC) has established itself as more than a simple cash support program—it supplements the real income of low-income working households and helps them sustain economic activity. As the number of households receiving application notifications for the first-half 2026 EITC has exceeded 1.3 million, interest in the system's purpose and support structure is also growing.

■ What Is the Earned Income Tax Credit?

The EITC is a program that provides a credit to households of workers and business owners who are employed but whose income falls below a certain level. Eligibility and payment amounts are determined by comprehensively evaluating household composition, income level, and asset requirements. The program aims to support the livelihood stability of low-income households while encouraging continued employment.

Unlike general livelihood support programs, it is characterized by being premised on economic activity. Rather than targeting households with no income at all, support is provided to households that generate certain earned or business income and meet income and asset criteria. In short, it is a structure in which the state partially supplements the income of households that earn wages or business income but lack sufficient funds to cover living expenses. It is classified as a work-linked income support program in that it prevents work itself from becoming a disadvantage while promoting economic self-sufficiency among low-income groups.

■ 1,304,000 Households Eligible for First-Half 2026 Notification… Over Half Aged 60 or Older

A total of 1,304,000 households are subject to notification for the first-half 2026 EITC.

By household type, the figures were 864,000 single-person households (66.2%), 386,000 single-earner households (29.6%), and 54,000 dual-earner households (4.2%).

By age group, those in their 60s and above accounted for 712,000 households, or 54.5% of the total, the largest share. They were followed by those aged 29 and under at 268,000 households (20.6%), those in their 50s at 142,000 (10.9%), those in their 40s at 92,000 (7.1%), and those in their 30s at 90,000 (6.9%). In detail, those aged 70 and above numbered 492,000 households and those in their 60s numbered 220,000. Among those aged 29 and under, single-person households accounted for the vast majority at 258,000.

This distribution shows that the EITC is not a program limited to a particular generation. From young single-person households to elderly working households, anyone can be eligible if they meet the income, asset, and household criteria.

■ Semi-Annual Application System Moves Up Payment Timing

Another significance of the EITC system is that it has accelerated the timing of benefit payments. The semi-annual application system for earned-income households departs from the previous method of paying the full amount after annual income was finalized, instead dividing payments into the first and second halves of the year. It is a mechanism designed to allow low-income working households to utilize support funds more quickly.

Applications for the first-half 2026 EITC are open only to households with earned income. Under the first-half system, a portion of the annually calculated amount is paid in advance, with a settlement made later once income is finalized.

■ Receiving a Notification Does Not Guarantee Payment

Merely receiving an application notification does not confirm payment. Actual eligibility and amounts are determined through National Tax Service review based on the applicant's household composition, income, and assets.

Ultimately, the core of the EITC lies in supplementing the income of working households. It is a structure that pays a credit to households that earn a certain income through work but whose living conditions have not sufficiently improved, thereby supplementing their income while supporting continued economic activity. For low-income workers, it means a portion of their income is compensated; for the government, it means being able to support the livelihood stability of vulnerable groups while maintaining work incentives.

However, one should not assume eligibility simply because wages are low or working hours have been reduced, nor conclude that a household is excluded merely because it receives a steady salary. The EITC applies multiple criteria together, including household type, total income, and assets. Therefore, households planning to apply should check not only their income level but also payment requirements such as spousal status, dependents, and total household assets.

[※ EITC eligibility and actual payment amounts may vary depending on individual household composition, income, assets, and the results of the National Tax Service review. This article is reference information intended to aid understanding of the program; before applying, be sure to verify your eligibility and the latest criteria through official channels such as the National Tax Service's Hometax or Sontax. AI was partially used in the writing of this article for data organization and sentence composition.]