EITC Calculator

EITC Calculator helps estimate Korea-related employment benefits, support payments, and eligibility pressure in English.

EITC and child incentive inputs

Calls the Korean EITC engine with 2025 rule-year thresholds for 2026 applications, asset reduction, business-income adjustment, and half-year payment split.

Estimated total support

₩2,236,053

EITC plus child incentive

Earned Income Tax Credit

₩1,266,666

Before any separate filing review

Child incentive

₩969,387

1 eligible child(ren)

Total income for test

₩24,000,000

Adjusted business income ₩0

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Korea EITC and child incentive calculator guide

This English guide translates the Korean Earned Income Tax Credit and child incentive page. The calculator calls runCalculation from the Korean EITC module and keeps household type, business-income adjustment, asset reduction, and half-year payment logic.

Household limits and maximum EITC

For the 2025 rule year used in 2026 applications, the single household income limit is KRW 22,000,000 with a maximum EITC of KRW 1,650,000. The single-income household limit is KRW 32,000,000 with a maximum of KRW 2,850,000. The dual-income household limit is KRW 44,000,000 with a maximum of KRW 3,300,000.

The Korean article explains the phase-in, plateau, and phase-out structure. Income first raises the benefit, then keeps the maximum amount through a middle band, and finally reduces the benefit as income approaches the household limit. This English calculator preserves that bracket logic instead of using a single benefit percentage.

Child incentive and asset reduction

The child incentive applies to single-income and dual-income households with children under 18. The income ceiling is KRW 70,000,000, and the amount can range up to KRW 1,000,000 per eligible child, with lower amounts in the phase-out range.

Household assets are tested separately. The asset threshold is KRW 240,000,000; at or above that level, the benefit is not payable. If assets are at least KRW 170,000,000 but below KRW 240,000,000, the Korean rule applies a 50% reduction. Debt is not deducted from the asset total for this test.

Business-income adjustment and payment timing

Business income is not always counted at the gross revenue amount. The Korean content applies adjustment rates by category: retail at 20%, manufacturing or food service at 30%, service at 40%, and professional services at 45%. This matters for small business owners and self-employed workers checking EITC eligibility.

Regular application usually pays the full calculated amount after the annual application process. A half-year application can split the benefit into 35%, 35%, and 30% settlement portions, which helps cash flow but can create a later settlement difference. The child incentive is handled through the regular application path.

Filing cautions

The Korean page highlights Hometax filing, ARS filing, and tax-office visits as application routes. It also notes that late filing may reduce the payable amount, so the calculator should be used before the filing window rather than after a notice is missed.

The result is an estimate. Eligibility can change because of household classification, spouse income, children under 18, asset valuation, lease deposits, business categories, and records already held by the National Tax Service.