Earned income tax credit [AI-generated image]
Earned income tax credit [AI-generated image]

"1.65 million won ($1,190) just came in," one user wrote. "828,000 won — not bad at all," posted another.

Social media has been flooded with posts from recipients confirming deposits after the National Tax Service paid out the 2025 earned income tax credit a full month ahead of schedule. Interest in who qualifies, how to apply and what amounts are available has surged alongside the posts.

The National Tax Service said Thursday it had begun disbursing the regular 2025 earned income tax credit that day — about a month before the statutory deadline of Oct. 1.

The payments cover about 2.04 million households that applied between May 1 and June 1 this year and reported earned, business or religious income, with a total of 2.26 trillion won distributed. The average payout per household came to about 1.1 million won.

By household type, single-person households made up the largest share at about 1.43 million, or 70.1 percent of recipients, followed by single-income households at 460,000 (22.5 percent) and dual-income households at 150,000 (7.4 percent).

By age group, recipients in their 20s — many of them early-career workers — accounted for the largest share at 590,000 households, or 28.9 percent. Those 60 and older came next at 510,000 (25.0 percent), followed by those in their 50s at 330,000 (16.2 percent) and those in their 30s at 320,000 (15.7 percent).

No application, no payment — late filers have until Dec. 1

The earned income tax credit is a government cash support program for working households with low incomes. The regular application window this year ran from May 1 to June 1, with a late-filing period open from June 2 through Dec. 1.

Eligible households receive nothing if they do not apply. However, starting last year, applicants who received a notification letter and gave advance consent to automatic enrollment are enrolled for two years — meaning they receive payments without filing separately, as long as they continue to meet the eligibility criteria.

Eligibility is determined by a combination of household composition, annual income and assets. For 2025, the total income thresholds are 22 million won for single-person households, 32 million won for single-income households and 44 million won for dual-income households. Maximum payouts are 1.65 million won for single-person households, 2.85 million won for single-income households and 3.3 million won for dual-income households.

Households that qualify for the 2025 credit but missed the regular deadline can still apply through Dec. 1 via the National Tax Service's Hometax website, its mobile app or its automated phone line at 1544-9944. Late applicants, however, receive only 95 percent of the full amount.

The National Tax Service said the total payout has been declining as rising nominal wages and asset values push more households above the income and asset thresholds. It added that a 2026 tax reform proposal would ease the income requirements to reflect minimum wage increases and raise the maximum payout to 3.6 million won to account for inflation, which it said would extend the benefit to more households going forward.


bbo@heraldcorp.com