For low-income households struggling to make ends meet to build a foundation for economic independence, support is needed that both eases immediate living cost burdens and helps them continue working. The Earned Income Tax Credit (EITC) is a representative income support policy reflecting this purpose. It is a work-linked income support system paid not only to employees but also to eligible business owners and religious practitioners, aiming to ease financial burdens so people do not lose the rewards of working simply because their income is low, boost work incentives, and create conditions for self-sufficiency.

■ Why It Draws Attention — Supporting Self-Reliance and Economic Independence

The system supplements real income by paying the credit to households that continue working but face livelihood difficulties due to low earnings. It draws attention because it goes beyond simply subsidizing living expenses to underpin self-reliance and economic independence, pursuing both employment and income security.

Particularly as inflation and housing costs squeeze household budgets, the EITC can help stabilize the lives of low-income households. Even households with regular monthly income may lack spare funds after covering food, utilities, and housing costs, and the credit provides additional income. The credit added to labor income can help stabilize living conditions and support the economic independence of low-income groups.

■ Current Income and Asset Criteria and Maximum Payment Amounts

According to the National Tax Service, the current EITC applies different income thresholds and maximum payment amounts by household type. Combined annual household income must be under 22 million won for single-member households, under 32 million won for single-earner households, and under 44 million won for dual-earner households. Maximum payment amounts are 1.65 million won for single-member households, 2.85 million won for single-earner households, and 3.3 million won for dual-earner households.

However, the maximum amount is not paid uniformly to all applicants; actual amounts vary depending on household composition and total wages. Asset criteria must also be met. Total household assets must be under 240 million won, and if assets are between 170 million and 240 million won, only half of the calculated credit is paid.

■ Missed the Regular Application? Post-Deadline Applications Until December 1, 2026

Households that missed the regular application for the 2025 EITC can apply post-deadline until December 1, 2026, though the payment is reduced to 95% of the calculated amount. Applications can be made through the NTS Hometax and mobile Sontax services, and even those who did not receive application guidance can check their eligibility. Since applying can affect household finances, eligible individuals should confirm deadlines.

■ Role in Easing Welfare Blind Spots

Another significance of the EITC lies in easing welfare blind spots. While supporting those with no income is important, support is also needed for households that work yet cannot escape economic hardship. Low-wage workers and small business owners may struggle despite participating in economic activity.

Welfare policy should aim not only at immediate poverty relief but also at helping recipients achieve long-term economic independence. The EITC aligns with this direction by providing tangible economic support to low-income households participating in the labor market. However, the EITC alone cannot resolve structural income shortfalls; its self-reliance support effect is greater when combined with stable jobs, fair wages, and housing cost relief.

■ 2026 Tax Revision Bill — Push to Expand Support Coverage

The government is also pursuing institutional improvements to broaden EITC coverage. The 2026 tax revision bill includes relaxing income requirements to under 26 million won for single-member households, under 37 million won for single-earner households, and under 52 million won for dual-earner households. Maximum payment amounts would also rise to 1.8 million won, 3.1 million won, and 3.6 million won, respectively. These are proposed changes and should be distinguished from current payment criteria.

■ Designed for Self-Reliance Beyond Simple Cash Support

The policy value of the EITC cannot be judged by payment size alone. It is meaningful in helping people working to survive not give up labor and in supporting them to sustain the possibility of self-reliance amid economic hardship. Within a welfare system combining targeted income support and a universal social safety net, the EITC serves working low-income households.

Above all, the EITC is designed to go beyond simple cash support, helping low-income people engaged in economic activity achieve living stability and continue toward independence. Improving guidance and accessibility so eligible households do not miss application periods is also cited as a key task.

[Actual EITC payments and amounts vary depending on household type, income, assets, application timing, and NTS review results. Reduction provisions may apply to post-deadline applications, and support criteria may change with future legal amendments. Applicants should verify their eligibility and the application schedule for the applicable year on the NTS Hometax. This article was written to aid understanding of the system, and some sentence composition and explanations were assisted by artificial intelligence.]