How to Apply Late for 2025 Earned Income and Child Tax Credits and the 5% Reduction Criteria

Regular applications for the 2025 Earned Income Tax Credit and Child Tax Credit closed on June 1, 2026. Households that missed the regular application period may file a late application from June 2 through December 1, 2026, but 5% of the credit amount determined through review will be deducted.

The credits are not benefits confirmed simply by applying. The National Tax Service determines eligibility and the amount after reviewing household composition, combined income of the applicant and spouse, household members’ assets, and whether the credits overlap with other deductions or credits.

Application Period and Payment Timing

After December 1, a late application for the 2025 tax year can no longer be filed. Even if verification of some income or asset information is delayed, it is advisable to first check whether you are eligible to apply and what supporting documents are required.

Who Can Apply

The Earned Income Tax Credit may be claimed by residents who had employment income, business income, or religious worker income in 2025 and meet all household, income, and asset requirements. The Child Tax Credit also requires applicants to meet the dependent child requirements in addition to these basic requirements.

Application Method by Type of Income

The tax classification of income, including income from insurance sales or door-to-door sales, may depend on the type of income reported to the National Tax Service rather than the actual title of the contract.

If You Already Filed a Semiannual Application

Employees who filed a semiannual application for the 2025 Earned Income Tax Credit will have the credit for that tax year reconciled, so they do not need to file another regular or late application for the same tax year. However, if the reported information has changed, such as when additional business income or religious worker income is identified, they must check the filing and review information on Hometax or contact the competent tax office.

Household Types and Income Requirements

Household types are classified according to whether there is a spouse, dependent child, or direct ascendant aged 70 or older, as well as the applicant’s and spouse’s gross salary, etc. Even if multiple people in one household meet the requirements, eligibility is determined on a household basis, and duplicate payments are not made.

The Child Tax Credit is available to single-income and dual-income households with dependent children, and the applicant’s and spouse’s combined total income for 2025 must be less than KRW 70 million.

Here, total income does not mean employment income alone. It includes employment, business, and religious worker income, as well as interest, dividends, pensions, other income, and other income included under applicable laws. An industry-specific adjustment rate may apply to business income. Therefore, eligibility should not be determined solely from annual salary or amounts deposited into a bank account.

Points to Note When Determining Spouses and Dependents

• A spouse means a legal spouse and does not include a common-law partner.
• For dependent children and direct ascendants aged 70 or older, age, annual income amount, and livelihood requirements must all be checked.
• Different age limits may apply to dependents with severe disabilities.
• Because the household determination date and the income and asset reference dates may differ, check the household information shown on Hometax.

Asset Requirements and Scope of Aggregation

Assets held by all household members, including the applicant, as of June 1, 2025, are aggregated. The total must be less than KRW 240 million. If the total is at least KRW 170 million but less than KRW 240 million, 50% of the calculated credit amount will be deducted.

Assets subject to aggregation generally include the following:

• Houses, land, and buildings
• Passenger vehicles
• Jeonse deposits and rental deposits
• Financial assets such as savings and installment savings accounts
• Securities such as stocks and bonds
• Various memberships, including golf club memberships
• Rights to acquire real estate

Liabilities such as mortgage loans and jeonse loans are not deducted from the value of assets. Rental deposits may be valued based on the actual contract amount or a statutory valuation method. If National Tax Service data differs from the actual contract terms, supporting documents such as a lease agreement must be prepared.

5% Reduction and Overlap Adjustments

The 5% reduction for a late application is based not on the amount expected by the applicant or the maximum credit available under the program, but on the calculated amount determined through review.

For example, if there are no other reduction or offset reasons and the amount calculated through review is KRW 2 million, the amount after the late-application reduction is KRW 1.9 million.

KRW 2 million × 95% = KRW 1.9 million

The actual payment may differ further if any of the following separate adjustment reasons apply:

• Asset reduction when the household members’ total assets are at least KRW 170 million
• Overlap adjustment when both the Child Tax Credit and the child tax credit deduction were claimed for the same child
• Offset of part of the payment under applicable laws due to unpaid national taxes
• A change in the amount calculated through review because the application information differs from information verified by the National Tax Service

If the Child Tax Credit and the child tax credit deduction overlap for the same dependent child, an amount equivalent to the child tax credit deduction may be adjusted against the Child Tax Credit. Therefore, applicants must also check the child tax credit deduction claimed during year-end tax settlement or on a comprehensive income tax return.

What to Prepare Before Applying

Anyone who received a notice can apply easily by preparing the individual authentication number shown on the notice. Even without a notice, anyone who believes they meet the requirements may submit a manually entered application through Hometax.

The following information should be checked or prepared:

1. An identity authentication method and household information in the resident registration records
2. Contact information in the applicant’s name and an account for receiving the credit
3. The applicant’s and spouse’s 2025 income details
4. Relationship, cohabitation, and income information for dependent children and direct ascendants
5. Details of household members’ assets as of June 1, 2025
6. Documents proving income, lease, or asset information that differs from National Tax Service data

Entering incorrect account information may delay payment. Check again that the account holder matches the applicant and verify the account number and financial institution.

Official Application Process

Applying Through Hometax

1. Go to the Earned Income Tax Credit and Child Tax Credit application page on National Tax Service Hometax.
2. Verify your identity using one of the available methods, such as a joint certificate, financial certificate, or simplified authentication.
3. If you received a notice, use the individual authentication number to review the prefilled application information.
4. If you did not receive a notice or the displayed information differs from the actual information, select the manually entered application.
5. Enter or revise household member, income, asset, contact, and refund account information.
6. Review the possible reductions and the application confirmation statement, then submit the application.
7. Save or record the receipt number and confirmation that the application was completed.

Hometax menu names may change following system updates. If you have difficulty finding the application page, search Hometax for “late application for the Earned Income Tax Credit and Child Tax Credit” and confirm that the applicable tax year is 2025.

If You Did Not Receive a Notice

A notice is provided for application convenience, and not receiving one does not by itself prohibit an application. If you believe you meet the requirements, you may enter personal information, income details, jeonse deposit details, account information, and other information in the manually entered application on Hometax.

Conversely, even if you received a notice, you may be found ineligible or the amount may change depending on the review results.

Checking Review Progress After Applying

You can check whether the application was received and its processing status through “Check Review Progress” in the Earned Income Tax Credit and Child Tax Credit menu on Hometax. When checking, be sure to confirm that the information is for the 2025 tax year.

If you receive a request for supplementary information, submit the materials using the specified method and within the specified period. If your address or contact information has changed, check your registered information to avoid missing notices from the National Tax Service. In principle, late applications are paid within 4 months of the application date, but actual eligibility and the amount are determined based on the review results.

Final Checklist Before Applying

• Did you have at least one of employment, business, or religious worker income in 2025?
• Is your household not already being processed through a semiannual application for the 2025 tax year?
• Did you correctly classify your household as single-person, single-income, or dual-income?
• Is the applicant’s and spouse’s combined total income less than the threshold for the applicable household type?
• Were the household members’ total assets as of June 1, 2025, less than KRW 240 million?
• Did you check for a possible overlap adjustment between the child tax credit deduction and the Child Tax Credit?
• Did you enter the account and contact information correctly?
• Did you submit the application by December 1, 2026?