The biggest driver of your Korean year-end tax refund is the dependent (personal) deduction. Each dependent cuts your tax base by 1.5M won, so adding even one more noticeably boosts your refund. Yet people miss dependents by not knowing the age and income rules, or get penalized for siblings double-claiming a parent. Here's the 2026 breakdown.
Basic deduction — 1.5M won each
You, your spouse, and dependents you support get 1.5M won each — if they pass two gates: income and age.
| Who | Age | Income |
|---|---|---|
| You | None | None |
| Spouse | None | Annual income ≤ 1M won (wage-only: gross ≤ 5M won) |
| Parents/grandparents | 60+ | |
| Children/grandchildren | 20 or under | |
| Siblings | 20 or under, or 60+ |
Key. A person with a disability has no age requirement (income only). A spouse also has no age test — just the 1M-won income rule.
The tricky "1M won income" rule
- Wage income only → gross salary ≤ 5M won passes (after the wage deduction).
- Business/other income → income after expenses must be ≤ 1M won.
- Public pensions and financial income also count — check the amount.
Exceed it and there's no deduction, no matter how much you support them.
Additional deductions
| Type | Who | Amount |
|---|---|---|
| Elderly | Age 70+ | 1M won |
| Disability | Tax-law disabled | 2M won |
| Working woman | Qualifying | 0.5M won |
| Single parent | Raising a child alone | 1M won (not with the above) |
A supported mother aged 72 with no income: 1.5M basic + 1M elderly = 2.5M won.
Who qualifies? — cases
| Case | Verdict |
|---|---|
| Father 63, no income | Yes |
| Child 19, part-time gross 4.8M | Yes (wage ≤5M, age ≤20) |
| Mother with large public pension | No if income >1M |
| College child aged 22 | No (over age) — education credit separate |
| Disabled brother 45, no income | Yes (no age limit) |
Don't double-claim. If siblings each list the same parent, the tax system flags it and claws it back with penalties. Only one sibling should claim — usually the one in the higher tax bracket.
FAQ
My parent receives a public pension — deductible?
Pension counts as income; over 1M won means no deduction. Check the amount.
My child is over 20?
No basic deduction (over age), but education credits may still apply.
Dual-earner couple — who claims the child?
Only one; usually the higher-bracket spouse.
Why the higher earner should claim
When two siblings or two spouses could both claim the same person, the deduction is worth more to whoever sits in the higher bracket. That is not a loophole — it follows from the rate scale running from 6% to 45%. A 1.5 million won deduction removes 1.5 million won from taxable income, so it saves 6% of that for one earner and up to 45% for another. Decide once, agree in writing if you need to, and make sure only one of you enters the name. The tax office matches these across returns and recovers the difference with a penalty when two people claim the same dependant.
Sources and where to check
- Seoul Metropolitan Government — on double-claiming a dependant. A dependant whose annual income exceeds 1 million won does not qualify, a spouse divorced before year-end cannot be claimed, and double-claiming draws a penalty.
- Seoul Labor Rights Center — which spouse should claim a dependant. 1.5 million won per person, a further 1 million won for an elderly parent (illustrated with a parent aged 80, so the page does not state the age threshold itself), and why the higher earner benefits more under a 6–45% progressive scale.
- Seoul Labor Rights Center — correcting a year-end settlement error. A real case of claiming a dependant who had exceeded the income limit.
Written as of July 2026. The 1.5 million won per person, the 1 million won elderly add-on, the 1 million won income test and the penalty for double-claiming all come from the pages above. One caveat: the age tests (60+ for parents, 20 or under for children, 70+ for the elderly add-on) and the disability, single-earner-woman and single-parent add-ons could not be checked against a public-agency page — the National Tax Service site was unreachable. Confirm on Hometax or the tax helpline (126). See also finding unclaimed refunds and the tax calendar. See also comprehensive income tax and the earned income and child credits.
