apply for Working Tax Credit After the 2024 deadline, applications close Dec. 1. check income and resource requirements, including child benefits, and apply from home. you'll receive 95%, so act fast.
table of contents
- last chance to apply this year
- what are the Work and Child Tax Credits?
- complete eligibility requirements
- income thresholds by household type
- what to do if you apply after the deadline
- how to Apply from Home
last chance to apply for benefits this year
the last chance to apply for the 2024 Work Tax Credit is coming up. if you missed the regular application window in May, you have until December 1 to apply after the deadline, and if you miss this window, you'll lose your 2024 credit forever.
many people are aware of the Earned Income Tax Credit program but miss the deadline or don't know if they're eligible. In this article, we'll walk you through the eligibility requirements and how to apply.
what is the difference between work and child benefits?
the Working Tax Credit is a government program that helps workers and business owners who are working but earning too little to make ends meet. it was created to provide practical help to families who work hard but struggle with low incomes.
child Benefit supports low-income families with children and can be claimed in conjunction with Working Tax Credit. both programs have the same goal of increasing work motivation and providing real income support.
clear eligibility requirements
to apply for Working Tax Credit, you'll need to meet both income and resource requirements. If you exceed either, you won't be able to apply, so it's important to check them carefully.
check your income requirements
in 2024, your combined annual gross income must be below a certain threshold based on your household composition.
the income requirement for the work subsidy varies depending on the type of household. single-person households must earn less than $22 million, single-earner households must earn less than $32 million, and dual-earner households must earn less than $44 million.
the income requirement for the Child Benefit is less than 70 million won for single-earner or dual-earner households. single-parent households are not eligible for the Child Benefit.
check your resources
as of June 1, 2024, the total amount of property owned by all members of the household must be less than 240 million won ($204,000). This includes property such as houses, land, buildings, and savings. it's important to note that debts are not subtracted.
for example, if your home is worth 200 million won and you still owe 100 million won on your mortgage, it will still be counted as 200 million won when calculating your wealth.
income thresholds by household type
many people are confused about the distinction between household types, so let's clarify.
single person household
a single-person household with no spouse, no dependent children under the age of 18, and no immediate dependents over the age of 70. you qualify if you live alone and have labor or business income.
homemaker criteria
you're a single-person household if one of two things happens. first, if you have a spouse, but your spouse's total salary is less than 3 million won. Second, if you do not have a spouse, but have dependent children under 18 years old, or if you have an immediate relative over 70 years old who earns 1 million won or less per year and lives with you as a cohabiting family member on your resident registration card.
here, gross salary means the total amount of labor income, business income, and religious income.
dual-income household conditions
a household is classified as a dual-income household if the total salary of both the resident and the spouse is KRW 3 million or more. both spouses must be engaged in some level of income activity.
cautions for applying after the deadline
if you apply by December 1, the National Tax Service will review your eligibility and pay the incentive in late January 2025. while the timing of payments is similar to regular applications, there are important differences.
applications received by December 1 are considered late applications and will only be paid 95 percent of the calculation. for example, if your Working Tax Credit calculation is $1,000,000, you'll only receive $95,000.
even if you don't like the 5 percent reduction, you won't get a dime if you don't file, so be sure to file by the deadline. if December 1 falls on a Sunday, you have until the next day to apply.
how to apply
claiming the Working Tax Credit is simple. just go to the IRS Homeworker website and sign in with a joint or single sign-on.
once you're logged in, select Apply for the Earned Income Tax Credit from the Apply & Submit menu. follow the on-screen instructions to fill in your household information, income information, and more - the IRS already knows this information, so it's easy to use.
during the application process, you can see in real-time whether you meet the income and resource requirements. if you don't meet the requirements, you'll be informed that you can't apply.
the same process is also available through the mobile HandTax app, so if you don't have access to a computer, you can apply on your smartphone.
frequently asked questions
Q. can I apply for both Working and Child Benefit?
A. Yes, you can. if you meet the requirements, you can apply for and receive both Working Tax Credit and Child Tax Credit at the same time. however, you can only apply for Child Benefit if you are a single parent or two-parent family with dependent children under the age of 18.
Q. can I apply as a freelancer or sole proprietor?
A. Yes, of course. sole proprietors and freelancers with business income as well as labor income can apply as long as they meet the income and asset requirements. there is no distinction between workers and business owners.
Q. i received it last year, will I automatically receive it this year?
A. No. You must reapply for the Working Tax Credit each year. Even if you received it last year, you will not receive it this year unless you reapply. We recommend applying during the regular application period in May each year.
Q. how long does it take to get paid after I apply?
A. If you apply after the December 1 deadline, you can expect to be paid in late January 2025. regular applications are usually paid in September, but late applications have a different review period and are paid in late January.
Q. does the property requirement include security deposits?
A. No, rental security deposits are not included in your resources. Your resource requirement is based on the property you own in your name and any deposits you have. If you live in a rental, your security deposit is excluded from your resource calculation.
wrapping Up
the Dec. 1 deadline for the last chance to apply for the 2024 Work Tax Credit is fast approaching. Make sure to check the income and resource requirements and apply from home if you qualify. it's an after-the-fact application, so only 95 percent will be paid, but if you don't apply, you won't get it.
let us know in the comments if you have any questions, and if you found this article helpful, please share it with your neighbors.