The work incentive system is a system that provides a type of incentive to low-income households, such as earned income or business income. It was created to help alleviate financial difficulties and maintain employment.
Today, we will introduce how to apply for the 2024 Earned Income Tax Credit, application qualifications, and application period.
2024 Work Incentives
What is the maximum support amount?
The work incentive can be up to 3.3 million won for dual-income households, and up to 2.4 million won more for those with children.
The maximum amount is calculated based on income, and it is important to carefully check whether you meet the conditions.
How to apply for work incentives
There are three ways to apply for work incentives.
①Apply to the Home Tax website
②Apply for home tax app
③Apply for ARS phone call
Let’s take a look at them one by one.
1. Apply on the Hometax website (PC)
Apply on the Hometax website (PC)
After accessing the Hometax website, click on the ‘Incentives/Year-end Settlement/Donation’ tab at the top and click on Regular Application for Earned Income/Children’s Incentives or Semi-Annual Application for Earned Income Tax Incentives and register your personal information, including verification of income and assets, before proceeding.
Go to Hometax homepage
2. Apply through the Hometax app (Sontax)
Apply at Sontax
First of all, those who have already downloaded the Hometax app will be able to do it easily using their mobile phones.
Full menu >> Incentives, year-end tax settlement, electronic donation >> Regular application for employment and child incentives / Semi-annual application for employment incentives
You can proceed in order.
Install Sontax app
3. ARS application
ARS application
There are two ways to apply for ARS, depending on whether or not you have received an application notice.
Simply call 1544-9944, select Apply for Earned Income Tax Credit, then follow the instructions to enter personal information and select application type.
※ If you have difficulty filling it out, you can call the incentive counseling center at 1566-3636 and request an application service.
Work incentive application period
Category Target Application Target Application Period
Select semi-annual application Earned income earner Income for the first half of 2023 23.09.01~23.09.15
Income for the second half of 2023 24.03.01~24.03.15
Regular application Working, business, religious earner 23 years annual income 24.05.01~24.05.31
The application period after the regular application deadline is 24.06.01~24.11.30.
※ Precautions for semi-annual application – When applying for the first half of the year, only residents with earned income can apply; business owners cannot apply.
If you apply for the first half of the year, you will automatically apply for the second half of the year as well.
Download the employment incentive application form
Eligibility to apply for work incentives
So what are the specific qualifications for applying for the work incentive?
Single-family household: Household without a spouse, dependent children (under 18 years of age), or direct ascendants over 70 years of age.
Single-income households: Households in which the spouse’s ‘total salary, etc.’ is less than 3 million won, and even without a spouse, there are dependent children (under 18 years old) or direct ascendants over 70 years of age. ⓛ Each annual income amount is less than 1 million won, ② Cohabitation according to resident registration. When living together as a family
Dual-income households: Households in which the ‘total salary, etc.’ of each resident and spouse is 3 million won or more.
Income requirements (combined for married couples) – The combined annual income for married couples must be less than the total income standard amount below determined according to the composition of household members.
Work incentives: 22 million won for single-income households, 32 million won for single-income households, 38 million won for dual-income households.
Child subsidy: 40 million won for single-income households or dual-income households
**Total income: Earned income (total salary amount), business income (total income amount amount
Property requirements (sum of household members) – The total assets owned by all household members, including houses, land, buildings, and savings, are less than KRW 200 million.
-Liabilities are not deducted when calculating property value.
※ If you meet the conditions below, you cannot apply for an employment incentive or child incentive.
A person who does not possess Korean nationality
A person who is a dependent child of another resident
Anyone who runs a professional business (including spouse)
Currently working regular workers (excluding daily workers) with an average monthly earned income of KRW 5 million or more (including spouse, only applicable to work incentives)
Work incentive payment amount
Category Maximum Payment Amount
Work incentives single-family household 1.65 million won
Single-income household: 2.85 million won
Dual-income households 3.3 million won
Child incentive minimum 500,000 won ~ maximum 800,000 won per child
Work incentives are paid in cash, and tax benefits also apply.
If you are curious about your work incentive, please check it through the link below.