Summary of the Expansion of the Earned Income Tax Credit and Monthly Rent Deductions, and Changes in Criteria
It is easy to misunderstand if you assume you will receive more immediately simply by seeing the news that the Earned Income Tax Credit and monthly rent deductions are being expanded. Since the details announced on August 19, 2026, are still the government's tax reform plan, you must examine the actual changes in criteria and the effective dates separately. The core of this reform plan lies in raising both the income threshold and the maximum payment amount for the Earned Income Tax Credit, while expanding the monthly rent tax credit limit to 12 million won per year. Although it also includes provisions to broaden the monthly rent deduction rate and IRP tax credit rate for young people, … Read more