meta description: The last day to apply for the 2024 Working Tax Credit is fast approaching. if you miss the December 1 deadline, you'll lose your 2024 credit forever. We break down the income requirements ($22,000 to $44,000) for single, married, and dual-income families, the Child Tax Credit requirements ($7,000), the 95% payment rate, and how to apply from home.
the 2024 Work and Child Tax Credit you won't want to miss: A guide to applying after the Dec. 1 deadline
1. why you should apply now: Dec. 1 is the 'last leaf'
theWork and Child Tax Creditsare key government cash payments to hard-working but low-income workers and business owners, and low-income families raising children, who are struggling to make ends meet. They are not just a tax refund, but a real life stabilizer for families who are struggling financially.
while most households applied during the regular Working Tax Credit application period in May, there is one last window of relief for those who didn't meet the requirements at the time, or missed out because they didn't receive a letter. the deadline to apply after the 2024 deadline is December 1.
it's clear why this date is important. if you miss the December 1 deadline, you'll never be able to claim the Earned Income TaxCredit or Child Tax Creditfor imputed income in 2024 because there's no way to do so.
why file after the deadline, and why you shouldn't care about the 5% reduction
the condition of "applying after the deadline" is that the calculated amount will be reduced by 5%, resulting in a 95% payment. Some people may be hesitant to apply because of this 5% reduction. However, even with a 5% reduction in the calculated amount, which can be up to KRW 3.3 million (the Working Allowance for Two-Income Families), the 95% payment is still a huge boost to a family's livelihood. even if the maximum payment is reduced by 165,000 won, the remaining millions of won are vital funds to overcome financial hardship.
in one case, a struggling family applied after receiving a text message about the Work Incentive when the husband's hospitalization and reduced income made it difficult for them to take out a loan. The incentive was used to purchase warm clothing for the husband's work in the cold winter months and much-needed items for the children, helping to sustain the family during a difficult time. having a 95% benefit is far more important to financial security than a 5% reduction. don't miss this last chance to apply for the 2024 Work Tax Credit.
2. the confusing eligibility requirements, in 3 minutes
toqualify for the Work Tax Credit and the Child Tax Credit, you must meet both income and resource requirements.
2.1. Income Requirements: By Household Type (Work Credit Income Requirements)
the gross income (combined) for the subsidy is the sum of all income from labor, business, and religious sources, as well as interest, dividends, pensions, and other income. This gross income must be below a certain threshold depending on the composition of the household.
households are categorized into single, single-earner, and dual-earner, and the difference between single-earner and dual-earner is the income of the spouse. a household is recognized as a dual-income householdonly if the total salary of the resident and spouse is KRW 3 million or more. if the spouse's income is less than KRW 3 million, or if there is no spouse (if there are dependent children or immediate dependents), the household is classified as a single-earnerhousehold and the income threshold is lowered.
household typesincome Limits for the Work Stipendchild Benefit Income Limits single person household less than $22 million not applicable dual-income household less than 32 million won less than KRW 70 million dual-income household less than KRW 44 million less than KRW 70 million
it's worth noting that the Child Benefitis a subsidy. the Child Benefit is aimed at helping families raise children, so it is not for single-parent households, and the income threshold is set much higher than the Working Benefit, at less than KRW 70 million for both single- and dual-income households. this is to broadly support households with high incomes but many children to support.
2.2. Property requirement pitfalls: Debts are not subtracted from assets (Work subsidy property requirement)
the second key requirement for receivingthe Work and Child Tax Creditsis the resource test. as of June 1, 2024, the total value of property owned by all members of the household must be less than KRW 240 million. This property includes everything from houses, land, buildings, savings, cars, etc.
here's where many applicants get confused. this means thateven if you borrowed a large sum of money from a financial institution for a security deposit, the entire amount of that security deposit is included in your total wealth. This can lead to low-income households with low actual net worth but high security deposits falling into the trap of exceeding this wealth threshold and becoming ineligible for the subsidy. when calculating your combined wealth, you should count the total amount of assets you own, net of any loans you may or may not have.
also, if your combined wealth is more than $170 million but less than $240 million, your subsidy calculation will be reduced by 50%. this intermediate threshold reduces the level of support for households with relatively large assets, but does not exclude them completely. You should check this intermediate threshold to make sure you don't miss out on even 50% of the subsidy.
3. process and payment dates for 'late applications' that receive only 95% of the payment
if you missed the regular application period, applying for a post-deadline payment is easy to do and the payment is relatively quick.
3.1. How to apply (Apply from home)
theapplication methodis very accessible.
using the HomeTax/HandTax app: This is the most basic way to access the IRS HomeTax (PC or mobile app), where you can look up your income and asset information and apply directly. homeTax also offers a preliminary calculation to see if you qualify for a payment.
easy Application (ARS/QR Code): if you are eligible to apply for the Working Incentive Payment, you can use the ARS (1544-9944) phone number or QR code provided in the notice to apply more conveniently. In particular, the ARS application is faster because you can call from your own mobile phone, eliminating the process of entering your individual verification number.
3.2. Payment Date and Maximum Payment Amount (Workfare Payment Date)
after the 2024 deadline, applications received by December 1, theapplication deadline, will be reviewed by the National Tax Agency and payments will be made at the end of January next year. it's important to finalize your Working Tax Creditapplication sooner rather than later to ensure you have money to live on at the beginning of the year.
theChild Benefit will be reviewed in the same way as the Working Benefit, and will be paid at the end of January next year.
payment categorieshousehold typemaximum payment (per year) working Allowance single household 1.65 million won work Incentives dual-income household kRW 2.85 million work subsidy dual-income household 3.3 million KRW child subsidy dual-income households 1 million won per child
these are the maximum annual amounts, and you will only receive 95% of these amounts if you apply for the LatePayment.
4. FAQ: 5 frequently asked questions about the Working and Child Benefit
Q1. If I apply this time, will I only get 95% instead of 100%?
A. Yes, you will. applications received by December 1 are legally considered late, meaning you will only receive 95% of the calculated benefit amount, reduced by 5%. however, if you missed the regular application period, it's still a good idea to take the 95%.
Q2. How do I verify that the total value of my property is less than $240 million?
A. Your assets should include all homes, land, buildings, savings, cars, etc. owned by you and all members of your household. it is important to note that debts incurred, such as loans from financial institutions, are not subtracted from resources. to determine your exact Earned Income Tax Credit resource requirements, it's best to use the calculator available on IRS HomeTax or call the IRS Helpline at 126 (no area code).
Q3. Can I apply if I only have business income in addition to my labor income?
A. Yes, you can. if you have business income, you can still apply for the Working Tax Creditif you meet the income and resource requirements. however, the amount of business income is calculated by applying an industry-specific adjustment rate to your gross income. however, if you run a professional business such as a lawyer or accountant, you are not eligible to apply for the subsidy.
Q4. What is the maximum amount of the Child Benefit and when will it be paid?
A. The maximum amount of the ChildBenefit is KRW 1 million per dependent child per year. for example, a single-parent household with two dependent children can receive a maximum of KRW 2 million. the payment date will be scheduled at the end of January next year, subject to the same review process as the work subsidy.
Q5. What happens if I miss the last chance to apply for the 2024 Payment?
A. December 1 is the last day to apply for the Working Tax Credit for 2024 imputed income. If you miss this deadline, your credit for that imputed year will be forfeited and there will be no way to apply again.
5. bottom line: Don't miss your chance
the 5% reduction doesn't matter - December 1 is the last chance to apply for the 2024 Work Tax Credit, which could provide a much-needed cash boost for low-income families. access IRS Hometax today for a quick eligibility check, secure your 95% payment, and get ready for a warmer start to the year in late January.
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