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Video Description

Type: KIHASA RESEARCH ON

Topic: Let's Find Out about the Earned Income Tax Credit (EITC) - KIHASA RESEARCH ON

Based on the KIHASA research report: Adequacy Model for Social Security Programs: Focusing on the Earned Income Tax Credit by Park Soeun

https://repository.kihasa.re.kr/handle/201002/47991

Transcript:

Have you heard of the Earned Income Tax Credit (EITC)?

The Earned Income Tax Credit is a work-related income support program designed to increase the real income of low-income workers and small business owners who are struggling to make ends meet, with the aim of encouraging employment. It provides a tax credit based on their earned income.

So, basically only households with earned income are eligible to apply for the EITC. These households must meet both the annual total income requirement (based on the couple’s combined income) and the asset requirement.

The EITC varies by household type, including single-person, single-income, and double-income households. The maximum credit amount is also divided into three brackets according to the applicant’s total earned income.

Which analytical model do you think Korea uses to evaluate whether the EITC is meeting its policy goals of encouraging employment and providing income support? How should the administrative management of the EITC be evaluated?

For more details, check out the KIHASA research monograph!