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The tax benefits of marriage may not be a top consideration when someone is deciding whether to get hitched or stay single. Still, married couples can sometimes qualify for extra savings when it comes to their income tax rate and certain credits, exemptions, exclusions, and deductions.

It isn’t all roses and rainbows, however. Couples may also lose some tax breaks when they change their filing status. But with careful planning, spouses may find there are tax benefits to being married vs. staying single.

Here’s a look at some of the tax bonuses (and penalties) couples can expect when they wed.

Tax Benefits of Marriage, Explained

Spouses have two basic options when filing their income tax returns: They can combine all their information on one return with the status of “married filing jointly,” or they can file two returns as “married filing separately.” (Even couples who were married at the very end of the tax year can no longer file as single.)

The decision to file separately can make more sense sometimes, depending on each spouse’s income and other factors. But the IRS says that when it comes to money and marriage, the joint filing status usually has more benefits for couples.

Advantages of filing jointly can include:

Your Tax Bracket as a Couple Could Be Lower

In the past, combining incomes on a joint tax return often bumped one or both spouses into a higher tax bracket with a higher tax rate than when they were single.

Changes to the tax code, however, have lessened the impact of this so-called “marriage penalty” on some couples. When the Tax Cuts and Jobs Act (TCJA) took effect in 2018, the income levels for joint filers in all but the highest tax brackets were doubled, reducing the chances that married couples would be penalized.

Some high-income couples still may land in a higher bracket after marriage. But with the TCJA’s equalized brackets, more spouses can expect to find themselves in the same or even a lower tax bracket than they had when they were single.

Recommended: Money Tracker App

Federal Estate and Gift Tax Limits Are Higher

Although people generally are referring to higher or lower tax brackets when discussing the pros and cons of filing jointly, marriage also can affect couples who plan to gift assets to their heirs.

Couples who wish to transfer wealth to loved ones during their lifetime or upon their death may be able to give twice as much as single filers without being taxed. Here’s what that looks like for 2025:

•   The IRS set the annual gift tax exclusion for individuals at $19,000 per recipient (children, grandchildren, etc.) for 2025. That means this year, married couples can give $38,000 per recipient tax-free without using a portion of their lifetime gift tax exemption.

•   The lifetime estate and gift tax exemption for individuals was set at $13.99 million for 2025. So while a single person can protect $13.99 million for 2025 without having to pay federal estate or gift tax, a married couple can shield a total of $27.98 million.

Other Gift and Estate Tax Advantages

Besides the tax advantages mentioned above, marriage also can allow spouses who are both U.S. citizens to transfer or leave unlimited amounts of money to each other without paying taxes. Any assets exceeding the couple’s estate tax exemption won’t be taxed until the surviving spouse dies.

Taxes on Social Security Benefits

Many people aren’t aware that a portion of their Social Security benefits can be taxed if their income is above a certain threshold. This is true whether you’re single or married, but the IRS thresholds are a bit higher (although not doubled) for married couples.

Here’s how it breaks down based on what the IRS refers to as “combined income.” (Your adjustable gross income + nontaxable interest + ½ of your Social Security benefits = your combined income.):

•   If you file as single and your combined income is between $25,000 and $34,000, you may have to pay income tax on up to 50% of your Social Security benefits.

•   If you’re married filing jointly and your combined income is between $32,000 and $44,000, up to 50% of your Social Security benefits may be taxable.

•   If you file as single and your combined income is more than $34,000, up to 85% percent of your benefits may be taxable.

•   If you’re married filing jointly and your combined income is more than $44,000, you may have to pay taxes on up to 85% of your Social Security benefits.

•   You don’t have to pay any taxes on your benefits if you fall below these thresholds.

If you’re married or expect to marry someday, you may want to keep taxes on Social Security in mind as you and your spouse plan your retirement together.

Earned Income Credit and Other Credits

When you’re married, you must file jointly to qualify for the Earned Income Credit (EIC). You generally can’t file separately and claim the credit. And that can be good news and bad news for couples.

The EIC is meant to help low- to moderate-income workers and families save on their income taxes. To be eligible for the credit, you must have earned income. But there are limits on how much you can earn and still qualify based on family size.

Here are a couple of examples of how marriage can result in a penalty or bonus when it comes to the EIC.

•   Penalty: The income thresholds are higher for joint filers than they are for single filers, but they aren’t doubled. If both spouses are working and both earn a moderate income, together they might exceed the limit for their family size before a single filer earning a moderate income would.

•   Bonus: On the other hand, if one spouse works and the other doesn’t, as a couple they might qualify for the EIC based on the working spouse’s earned income. A single person who doesn’t have any income can’t take the credit.

Other credits and deductions that can be affected by a change in your filing status include the child and dependent care credit, the student loan payment interest deduction, the Saver’s Credit, and the American Opportunity Tax Credit. Generally, married couples who file separately can’t claim these on a return.

Personal Residence Exclusion

The principal residence exclusion allows homeowners who meet certain criteria to shield all or a portion of the profit they make on the sale of their home from capital gains tax. Single filers can exclude up to $250,000, but couples who are married filing jointly can exclude twice that — up to $500,000.

While those numbers may have seemed generous just a few years ago, with the recent rapid rise in what homes are worth, tax consequences from a home sale may be more likely these days. The $500,000 exclusion married homeowners are allowed still may not be enough to protect their entire profit when they sell a home, but it can give them a little more breathing room than singles can count on.

Recommended: Does Net Worth Include Home Equity?

IRA for Jobless Spouse

Usually, under IRS rules, you can’t contribute to an individual retirement account (IRA) unless you earn an income in that year. But there’s a work-around that can benefit some married couples who file jointly.

If one spouse earns income and the other does not, and the couple files jointly on their taxes, the spouse who works can contribute to a “spousal IRA” that’s in the name of the spouse who isn’t working.

This allows couples to maximize their retirement savings — even if one spouse takes some time away from work, perhaps to care for their small children or elderly parents. And depending on what works better for your circumstances, you can use a Roth or traditional IRA as a spousal IRA.

“Traditional IRAs can help you lower your tax bill and are great for individuals who earn too much money to contribute directly to a Roth IRA,” says Brian Walsh, CFP® and Head of Advice & Planning at SoFi. “Higher-income earners might not get to deduct contributions from their taxes now, but they can take advantage of tax-deferred growth between now and retirement.”

The rules regarding annual contributions and tax deductions are the same for spousal IRAs as they are for traditional IRAs. If you have questions, you can ask your financial advisor or tax preparer, or go to the IRS website for information.

You Can Use Your Spouse as a Tax Shelter

If you or your spouse owns a business, you’re both probably hoping it’s a success. But if it isn’t, it could end up being a tax benefit — if you can claim those losses as a write-off on your joint return.

If it looks as though this strategy might be useful — especially in the first year or so of the business — you may want to ensure personal and business transactions stay separate by opening a business bank account. Or you can just keep better track of your income and spending with a free budget app.

Higher Deduction for Charitable Contributions

These days, nearly 9 out of 10 taxpayers take the higher standard deduction put in place by the TCJA — and that means they can’t claim a tax break for charitable contributions on their federal return.

But if you do end up itemizing on your return, being married could help you maximize the tax deduction you get for charitable giving. Although your maximum deduction is limited to a certain percentage of your adjusted gross income (usually no more than 60%), if you file jointly, the deduction is based on your combined AGI. That means you may be able to donate more in a particular year than a single filer.

Couples Can “Shop” for Tax-Friendly Benefits

Unless they’re both with the same company, a working couple may be able to pick and choose from their employers’ different benefits packages to take advantage of certain tax breaks. A couple of those benefit options might include:

Flexible Spending Account (FSA)

If one spouse’s employer offers an FSA, you may be able to use it to pay for qualifying medical, vision, and dental costs for your family, or for qualifying dependent-care programs. The amount you contribute to the account will be deducted from your salary pre-tax, which can help cut your income tax bill.

Health Spending Account (HSA)

If one employer offers a high-deductible health plan (HDHP) and you choose that health insurance option, your family can benefit from opening an HSA to save for future medical expenses.

Contributions to an HSA are tax-deductible, and distributions are tax-free when used for qualified medical expenses. Unlike the use-it-or-lose-it funds in an FSA, you can keep the money in the account as long as you like. And any growth in your HSA from interest and/or investment returns is also tax-free.

Filing One Return Instead of Two

Spouses who file jointly have to worry about completing only one income tax return. And if your financial lives already are intertwined (you do your budgeting as a couple and have a joint bank account vs. separate accounts), it may be easier to file jointly than to separate everything for two returns.

It also could make it easier to get your return done by the tax deadline — or maybe even early, so you can get your tax refund faster. And if you hire a professional to prepare one return instead of two, it could save you some money.

How the Tax Cuts and Jobs Act Could Affect Future Taxes

The clock was ticking on several of the tax benefits and penalties married couples could experience under the TCJA (some of which are listed above). However, the passage of the One Big Beautiful Bill in July 2025 made certain key provisions permanent. They include:

•   Income tax brackets and rates

•   Standard deduction

•   Personal exemptions

•   Limits on deductions for mortgage and home equity loan interest

•   Estate and gift tax exemption

Recommended: Should I Sell My House Now or Wait?

Tax Downsides to Marriage to Consider

Besides the potential penalties already mentioned throughout this post, there can be other downsides to marriage when it comes to taxes, including:

•   When you sign a joint return, the IRS holds both spouses responsible for the validity of everything that’s on it. Even if one spouse manages the money in your marriage (paying the bills, investing, and doing the taxes), it’s a good idea to go over the return carefully together before you both sign.

•   If one spouse defaults on a federal student loan after you marry or owes back child support, your joint refund could be delayed or garnished to pay the debt.

•   If you’re a high-earning couple, you might have to pay the net investment income tax and/or the Medicare surtax. The threshold on these taxes is $200,000 for single filers, and only goes up to $250,000 for married couples filing jointly.

Recommended: What Is the Difference Between Transunion and Equifax?

The Takeaway

Marriage can impact just about every aspect of your life — including the taxes you pay. There are tax benefits and penalties to consider as you plan your future and your finances together. Some potential benefits include a lower tax bracket, estate tax advantages, the Earned Income Credit, and the Personal Residence Exemption, among others. But watch out for the net investment income tax and the Medicare surtax. According to the IRS, overall most couples benefit from filing jointly.

Keeping track of your combined spending, saving, and investing can make it easier to manage your money throughout the year, and to work on your taxes when it’s time. And a money tracker app can help you do it all in one place — with credit score monitoring, spending breakdowns, financial insights, and more.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

See exactly how your money comes and goes at a glance.

FAQ

Is there a tax advantage to marriage?

While every couple’s situation is different, spouses who file jointly may enjoy some advantages when it comes to certain tax exclusions, exemptions, deductions, and credits.

Do you get a bigger refund if you’re married?

If your filing status is married filing jointly and you make the most of the many credits and deductions available to you as a couple, you may see a bigger refund.

Do you pay less taxes if you are married?

You won’t automatically pay less taxes because you’re married. But with careful planning, you may be able to take advantage of your marital status to save money on your income taxes.

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Photo credit: iStock/simpson33

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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The earned income tax credit directly reduces the amount of income tax owed by lower-income working taxpayers. Depending on a tax filer’s number of children, tax filing status, and income, the tax credit can be in the thousands.

Here’s what you need to know about the 2025 EITC tax refund schedule and the 2026 EITC numbers.

What Is the Earned Income Tax Credit (EITC)?

The earned income tax credit, also known as the earned income credit (EIC), is a credit that low- to moderate-income workers can claim on their tax returns to reduce federal income tax owed.

Singles or married couples must have some form of earned income to qualify. Above a certain income level, they aren’t eligible for the credit. The number of qualifying children is also a key component of the tax credit.

The credit ranges from $649 to $8,046 for the 2025 tax year (taxpayers filing by April 15, 2026).

For those filing federal returns in 2026, the maximum allowable adjusted gross income (AGI) is $68,675 for a married couple filing jointly who have three or more children. Tables with amounts for the tax credit and maximum AGI are in the next section.

At the very least, the EITC reduces the amount of tax owed. At best, low-income people who have little or no income tax liability can receive the total credit in the form of a tax refund.

How Does the Earned Income Tax Credit Work?

The EITC is a fairly complicated credit, even for taxpayers who are not filing taxes for the first time. In fact, the IRS sees errors in roughly 33% of tax returns claiming it. Online tax filing software can help. The IRS also offers an “EITC Assistant” calculator.

The amount of the credit depends on the tax filer’s number of qualifying children, filing status, and earned income or AGI. (AGI is defined as gross income — including wages, dividends, capital gains, business income, and retirement distributions — minus adjustments to income, which can be student loan interest, contributions to a retirement account, educator expenses, or alimony payments.)

Investment income must be $11,950 or less in 2025 and $12,200 in 2026.

On your tax form, the credit is filed under the “payments” section, which is a way for the credit to be directly applied dollar for dollar to any income tax you owe.

Workers receive the credit beginning with their first dollar of earned income. The amount of the credit rises with earned income until it reaches a maximum level. Then it begins to phase out at higher income levels.

Taxpayers with earned income or AGI above a certain level won’t qualify for the tax credit at all. These amounts are listed below for tax years 2025 and 2026.

Tax Year 2025 EITC Tax Refund Schedule
Number of children or dependents	Maximum earned income tax credit	Maximum AGI for single, head of household, or widowed filers	Maximum AGI for married joint filers
0	$649	$19,104	$26,214
1	$4,328	$50,434	$57,554
2	$7,152	$57,310	$64,430
3 or more	$8,046	$61,555	$68,675

Phaseout amount begins at:

•   Single, head of household, or widowed: $10,620 for no children; $23,350 with qualifying children.

•   Married filing jointly: $17,730 for no children; $30,470 with qualifying children.

Tax Year 2026 EITC Tax Refund Schedule
Number of children or dependents	Maximum earned income tax credit	Maximum AGI for single, head of household, or widowed filers	Maximum AGI for married joint filers
0	$664	$19,540	$26,820
1	$4,427	$51,593	$58,863
2	$7,316	$58,629	$65,899
3 or more	$8,231	$62,974	$70,224

Phaseout amount begins at:

•   Single, head of household, or widowed: $10,860 for no children; $23,890 with qualifying children.

•   Married filing jointly: $18,140 for no children; $31,160 with qualifying children.

Looking for insights into your budgeting and spending? An online budget planner can help you keep tabs on where your money is coming and going.

Who Qualifies for the EITC?

To qualify for the EITC, you must have earned income and meet certain AGI requirements.

Types of income include:

•   W-2 wages from employment

•   Self-employment (or gig or freelance) earnings

•   Certain disability benefits

•   Benefits from a union strike

•   Nontaxable combat pay

You do not have to include income from the following sources:

•   Social Security

•   Child support or alimony

•   Unemployment benefits

•   Pensions or annuities

•   Interest and dividends

•   Pay as a prison inmate

What Are ‘Qualifying Children’?

To claim a child for the EITC, a qualifying child must have a valid Social Security number, meet the four tests of a qualifying child, and cannot be claimed by more than one person.

The four tests for a qualifying child are:

•   Age: A qualifying child can be of any age if they are permanently and totally disabled; under age 19 at the end of the year and younger than you; or under age 24 at the end of the year and a full-time student for at least five months of the year and younger than you.

•   Relationship: A qualifying child can be a son, daughter, stepchild, adopted child, foster child, brother, sister, half brother, half sister, stepsister, stepbrother, grandchild, niece, or nephew.

•   Residency: The child lived with you in your home for more than half the year.

•   Joint return: The child is not filing a joint return with anyone, such as a spouse, to claim any tax credits like the EITC.

Recommended: 13 Steps to Prepare for Tax Season

Can You Claim the EITC If You Have No Children?

It is possible to claim the EITC if you have no children, but the income threshold is very low and the credit is small.

For tax year 2025, the maximum credit is $649 for filers without children. The maximum adjusted gross income is $19,104 for taxpayers filing as single, head of household, or widowed and $26,214 for married couples filing jointly.

For tax year 2026, the maximum credit is $664. The income figures are in the table above.

Requirements include:

•   A valid Social Security number

•   Not filing Form 2555 (foreign earned income)

•   Main home is in the U.S. for more than half the year

•   Not claimed as a dependent or qualifying child on another tax return

•   You are at least 19 (or 24 if you were at least a part-time student for at least five months of the year, or at least 18 if you are a former foster child after turning 14 or a homeless youth)

There are also special qualifying rules for clergy, members of the military, and taxpayers and their relatives who receive disability payments.

Recommended: Do You Qualify for the Home Office Tax Deduction?

How the EITC Can Affect When You Receive Your Refund

Your tax refund may be delayed if you claim the EITC and file early in the year. The IRS is required to wait until mid-February to issue refunds when the EITC is claimed.

In general, expect a tax refund by March 3, assuming there were no issues with your tax return and you opted for direct deposit, the IRS says.

Common Errors to Avoid When Claiming the EITC

The IRS lists five snags to avoid when claiming the earned income credit.

1.    Your child doesn’t qualify: The IRS states that most errors occur because the child doesn’t meet the four requirements relating to relationship, residency, age, and filing status.

2.    More than one person claimed the child: Only one person can claim the qualifying child. If the child counts as a qualifying child for more than one person (such as separated or divorced parents), the IRS has some guidelines on how to choose which person can claim the qualifying child.

3.    Social Security number or last name doesn’t match card: The Social Security number and name must be exactly how they appear on the Social Security card.

4.    Married and filed as single or head of household: Taxpayers cannot claim the EITC if they are married and file as single or head of household.

5.    Over- or underreported income or expenses: Be sure to include all types of income from IRS Forms W-2, W-2G, 1099-MISC, 1099-NEC, and other income unless it’s one of the exceptions listed above.

The Takeaway

The EITC offers income tax relief for lower-income workers. If you think you might qualify, look at the EITC tax refund schedules, seek tax help if you need to, and file electronically for a speedier refund. While filing taxes isn’t most people’s idea of fun, an online money tracker can make keeping your financial house in order much easier.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

See exactly how your money comes and goes at a glance.

FAQ

When should I expect my EITC refund?

According to the IRS, a refund with an EITC will arrive around March 3 if you filed electronically and elected for direct deposit, and there were no issues with your return. By law, the IRS cannot issue a tax refund with an EITC before mid-February.

Most taxpayers of all stripes who file electronically should get a refund within 21 days, according to the IRS.

Will there be an EITC in 2026?

Yes, there is an EITC for 2026. It rises to a maximum of $8,231for the 2026 tax year.

Will tax refunds be bigger in the 2025 tax year?

It’s possible. Many taxpayers could see bigger refunds this year, thanks to inflation-related adjustments to the tax brackets and standard deduction amounts.

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Photo credit: iStock/Liliia Bila

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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The Child Tax Credit (CTC) is designed to offer a tax break to qualifying families with one or more children. So how much is it worth? The Child Tax Credit 2025 maximum is $2,200 per qualifying child.

Part of the credit, referred to as the Additional Child Tax Credit (ACTC), is refundable. The refundable portion is worth up to $1,700 per qualifying child.

Here’s more on how Child Tax Credit payments for 2025 work.

What Is the Child Tax Credit?

There are two main types of taxes most people have to deal with: federal and state. The IRS, or Internal Revenue Service, is in charge of collecting federal income tax as well as extending tax credits and other tax breaks to eligible filers.

The Child Tax Credit is a federal tax credit for families with qualifying children. Whether you’re filing taxes for the first time or the 20th, it’s to your advantage to claim every credit you’re eligible for, especially if you have kids.

Here are a few key takeaways to know about the credit:

•   Parents and guardians of qualifying children may be eligible to claim the Child Tax Credit even if they don’t normally file a tax return.

•   Unlike some family-oriented tax credits, the Child Tax Credit is not limited exclusively to lower-income households.

•   Child Tax Credit maximums and income thresholds are adjusted periodically to reflect changes to the Internal Revenue Code.

The Child Tax Credit is distinct from the Child and Dependent Care Credit, which helps families recover some of the money they pay for child care so they can work. It’s possible to claim the Child Tax Credit alongside one or more deductions, which reduce your taxable income.

Using a money tracker can help you keep up with expenses that may qualify for tax deductions each year. You can also adjust your income tax withholding through your employer to ensure the right amount of tax is being taken out of your paychecks.

Recommended: How Much Do You Have to Make to File Taxes?

How Much Is the Child Tax Credit?

Here’s how much the Child Tax Credit is for 2025: The amount is $2,200 per qualifying child. Some points to note:

•   The $2,200 amount is the most you could qualify for per child if you’re eligible to claim this credit. The amount of the credit you can claim is reduced by $50 for every $1,000 you earn above $200,000 for single filers or above $400,000 for joint filers.

•   Part of the Child Tax Credit is refundable, which means that if you owe less in taxes than the amount of the credit you qualify for, you can get the difference back as a refund. The refundable part of the Child Tax Credit is called the Additional Child Tax Credit (ACTC), and it maxes out at $1,700 per qualifying child.

The IRS decides how much of the Additional Child Tax Credit you qualify for using this formula:

Earned income above $2,500 x 15% = Your additional child tax credit amount

You can do the math yourself or use tax preparation software to crunch the numbers. Or you might work with a tax professional.

How the Child Tax Credit Works

The Child Tax Credit works by reducing the amount of tax you owe when you file your return.

•   First, here’s how to qualify. Each child to be claimed must:

•   Have a Social Security number

•   Be under age 17 at the end of 2025

•   Be claimed as a dependent on your tax return

•   Be a U.S. citizen, U.S. national, or U.S. resident alien

•   Be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of one of these (for example, a grandchild, niece, or nephew)

•   Not provide more than half of his or her own support for the tax year

•   Have lived with you for more than half the tax year

Now, here’s the simple version of what it means to claim the Child Tax Credit.

•   Depending on how much you owe, the child tax credit can reduce your tax to $0.

•   If your Child Tax Credit is more than the amount you owe, you may be eligible for the Additional Child Tax Credit, or ACTC.

•   The ACTC lets you get the portion of the credit you didn’t apply to your tax liability back as a refund, up to the $1,700 per child limit.

To claim a tax child credit for 2025, you’ll need to file an income tax return using Form 1040 and complete Schedule 8812, Credits for Qualifying Children and Dependents. This form asks you questions about your child, income, and filing status to determine if you’re eligible for the Child Tax Credit (or Additional Child Tax Credit) and the amount.

Again, if you’re using reliable tax prep software, your program should walk you through the questions you need to answer. And if you expect to get money back from taxes in a refund, using an online budget planner can help you figure out how to make the most of it.

Benefits of the Child Tax Credit

The primary benefit of the Child Tax Credit is that it can reduce what you pay in taxes to the IRS. Tax credits are amounts that reduce your tax liability, or the amount you owe, on a dollar-for-dollar basis. So, if you owe $1,000 in taxes and qualify for a $1,000 tax credit, the credit could bring your tax bill down to $0.

The Child Tax Credit, along with other credits, helps you pay less in taxes and keep more of your money. On a broader scale, research shows that the Child Tax Credit helps to:

•   Reduce poverty and financial hardship

•   Improve housing affordability for families

•   Improve long-term educational, financial, and health outcomes for children

•   Produce greater economic stability overall

While the credit is available to higher-income families, it primarily benefits lower- and middle-income households.

Recommended: Everything You Need to Know About Taxes on Investment Income

Child Tax Credit History

The Child Tax Credit was created by the Taxpayer Relief Act of 1997 to ease the financial burdens associated with raising children. In its earliest form, the credit was generally nonrefundable and its availability was limited to middle- and upper-middle-class taxpayers.

Since inception, lawmakers have taken steps to:

•   Adjust income thresholds for eligibility

•   Raise (or lower) the amount of the credit

•   Redefine what it means to be a qualifying child

The most recent round of changes came in 2017 with the passage of the Tax Cuts and Jobs Act. Under the Act, the credit was expanded to allow more families to claim it.

Did the Child Tax Credit pass for 2025? Yes, it’s still available in its expanded form under the TCJA. Legislation passed in July 2025 made key aspects of the CTC permanent and added some new enhancements.

Child Tax Credit Eligibility

If you’re preparing for tax season, you might be wondering if you’re eligible for the Child Tax Credit. The IRS has a few requirements you’ll need to meet to claim the child tax credit, as noted above. First, you must have a qualifying child who is:

•   Under 17 at the end of the tax year

•   Your son, daughter, stepchild, eligible foster child, brother, sister, stepsibling, half-sibling, or a descendant of one of these, such as a grandchild, niece, or nephew

•   Reliant on you for more than half of their support for the tax year

•   Living with you or has lived with you more than half the tax year

•   Eligible to be claimed as a dependent on your return

•   Not filing a joint return themselves

•   A U.S. citizen, U.S. national, or resident alien

The child must also have a valid Social Security number that was issued before the tax filing deadline. If they don’t, it would be a tax filing mistake to claim the Child Tax Credit.

For parents, the primary requirement is income-based. If your income is below $200,000 as a single filer or $400,000 for joint filers, you may be eligible to claim the full credit. Those who earn above that amount (considerably higher than the average salary in the U.S.) may be eligible for a lesser amount.

“It’s a good idea to check your pay stubs periodically to ensure that the deductions being taken out are accurate and align with your financial goals,” says Brian Walsh, CFP® and Head of Advice & Planning at SoFi. “To make sure the appropriate amount of taxes are being withheld from each paycheck, you may also want to revisit your W-4 annually and make any adjustments as your circumstances change.”

Recommended: Credit Monitoring

The Takeaway

The income tax child credit for 2025 could be a valuable tax break if you’re raising one or more children. Understanding how the Child Tax Credit works, when you can claim it, and what it’s worth can help you maximize your potential tax savings. Keeping on top of your potential tax credits is an important aspect of tracking your finances and managing your money well.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

See exactly how your money comes and goes at a glance.

FAQ

How does the Child Tax Credit work?

The Child Tax Credit works by reducing your tax liability on a dollar-for-dollar basis. The Additional Child Tax Credit is the refundable part of the Child Tax Credit. The amount of the credit you qualify for depends on your filing status and household income.

Why am I only getting $2000 for the Child Tax Credit?

The Child Tax Credit maximum is $2,200 per qualifying child. If you file your tax return with just one qualifying child listed, the most you could claim for the credit is $2,200.

What is the $3600 Child Tax Credit?

The $3,600 Child Tax Credit was a temporary benefit granted to eligible families under the American Rescue Act. For 2021, families were eligible to receive up to $3,600 in Child Tax Credit for each qualifying child under 6 and $3,000 for each qualifying child under 18. The purpose of the expanded credit was to provide financial relief to households that were struggling as a result of the COVID-19 pandemic.

How much is the 2025 Child Tax Credit?

The 2025 Child Tax Credit allows a credit of up to $2,200 per qualifying child. The Additional Child Tax Credit, which is the refundable portion of the Child Tax Credit, is worth up to $1,700 per qualifying child.

How much is each dependent worth on taxes in 2025?

If you’re filing taxes with one or more qualifying children listed as dependents, you could claim a Child Tax Credit worth up to $2,200 per child. You could also claim the Additional Child Tax Credit, which is worth up to $1,700 per child. Eligibility is based on several factors, including your child’s age, your income, and your tax filing status.

Is the Child Tax Credit 2025 true or false?

The Child Tax Credit is a legitimate tax break that families with qualifying children may claim for the 2025 tax year. Whether you can claim the full amount of the credit hinges on your income and filing status, as the credit begins to phase out once your income reaches a certain threshold.

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Photo credit: iStock/AsiaVision

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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If you’re asked to void a check, which often happens when you’re setting up direct deposit, you might not be sure how to do it. Checks are being used less often these days, and as a result, people may be unfamiliar with the way they work.

Fortunately, the process of voiding a check for direct deposit or for any reason is pretty simple.

What Does It Mean to Void a Check?

First of all, what does it mean to void a check? When you write the word “VOID” on a blank check, it becomes a voided check meaning it cannot be used to draw money out of your account. This type of check is not used for deposit or cashing purposes.

Instead, the check, once you’ve voided it, can be used to set up direct deposit or bill pay. Establishing direct deposit or online bill pay eliminates the hassle of going to the bank to make payments or deposit your paycheck. It also automates your transactions to speed delivery and help you keep tabs on the money going in and out of your account.

Recommended: What Is an Outstanding Check?

How to Void a Check Step by Step

If you’re wondering how do you void a check, all you need is a blank check and a pen. Here’s how to complete the process:

Step 1: Use a Blue or Black Pen

This is a situation in which the writing instrument you use matters. Use a blue or black pen, not a pencil or a pen with a different color ink.

Step 2: Write ‘VOID’ in Large Letters Across the Check

Next, write “VOID” in large letters across the face of the check. However, be sure not to cover the account and/or routing numbers at the bottom. You could also write “VOID” in smaller letters on the payee line, amount line, in the amount box, and on the signature line, if you prefer.

Step 3: Keep a Record for Yourself

Write down the check number, recipient, and date in your checkbook and note that the check was voided so you don’t get confused by a skipped check when you balance your checkbook.

Why Would You Need to Void a Check?

There are practical uses for voiding a check including setting up direct payments or deposits, and automatic bill payments. Providing a voided check is a convenient way to share your banking information for such purposes. After all, copying your banking information (routing and account number) by hand leaves you vulnerable to mistakes.

Here are the top reasons to void a check:

•   Set up direct deposit with your employer for wages, salary, or expense reimbursement. Employers often let workers set up direct deposit instead of receiving a physical paycheck, and a voided check speeds the process.

•   Set up direct deposit for government benefits. Unemployment benefits and Social Security payments may be delivered by direct deposit instead of a mailed check. This way, both parties can enjoy the increased security of a digital transaction. Once the direct deposit turns up, you can then transfer funds to a different account as needed.

•   Establish automatic bill pay for loans, utility bills, or other payments. You may have the option to set up automatic payments for bills such as an auto loan or mortgage. Setting up autopay helps ensure you don’t miss a payment.

•   Void checks with mistakes. If you are writing a check from your checking account and make a mistake, you can write “VOID” across it, so no one uses or deposits it.

What’s the Difference Between a Voided Check and a Canceled Check

You may wonder what the difference between a voided and a canceled check is. When you make a void check, you are canceling a physical check you have in your possession. If you’ve lost a check (especially a blank one) or have sent out a check in error, that’s a different situation. You can contact your bank about stopping payment on the check.

When banks and credit unions talk about canceled checks, however, they are likely referring to ones that have already been used to transfer funds. The work of these checks is done, so to speak, so they are considered canceled.

The differences between a voided check and a canceled check are:

•   You can void a check yourself. To cancel a check, however, a bank or credit union has already been involved.

•   Voiding is quick and free. If you seek to cancel a check by stopping payment, it will involve time to speak to your bank, and there may be a fee charged to stop payment.

Recommended: How to Deposit a Check Online

No Checks? No Problem. Here’s What to Do

If you don’t have any checks, the first step to getting a checkbook is to open a new bank account. Checks may be free or may be offered for a fee. Many banks will give you preprinted “starter checks” to use until your personalized ones arrive.

If you already have a checking account but no checks, you can contact your bank or credit union about ordering checks. They can usually be ordered online, via a mobile app, over the phone, or in person.

What to Use Instead of a Voided Check for Direct Deposit

Aside from a voided check, you have other options to establish autopay or direct deposit. Here are some alternatives:

•   Direct deposit form. Some employers may let you use a direct deposit form without a voided check. In this case, ensure you complete your bank information correctly.

•   Preview a check. Some financial institutions let you “preview” your checks on your bank or credit union’s website before you order them online. If your financial institution allows this, you might be able to print out the preview and write “VOID” across it.

•   Enter bank information online. Depending on how your employer sets up direct deposit, you might have the option to connect directly to your bank account through your company’s payroll website. Just enter your bank information instead of supplying a voided paper check to manage your banking online.

•   Request a counter check at a bank branch. You may have the option to request what is known as a counter check at your local bank branch. You can use this specially printed check containing your bank information for your voided check. Some banks charge a fee for this service.

Recommended: Sending Money With Zelle

The Takeaway

Knowing how to void a check is a good skill to learn. When you write “VOID” on a check, it becomes a voided check you can use to set up autopay or direct deposit. Voided checks are not available for deposit or cashing.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy 3.30% APY on SoFi Checking and Savings with eligible direct deposit.

FAQ

Can I void a blank check?

Yes, you can void a blank check by taking a blue or black pen and writing “VOID” across the face of the check. You could also write “VOID” in the payee line, amount line, amount box, and the signature line.

Can I void a check after it’s been sent?

You can’t void a check you have already sent. You’ll have to cancel the check. To do this, first make sure the check hasn’t cleared yet. Then, make sure you have your account number, check number, dollar amount, and date you wrote on the check. Contact your bank or credit union to stop payment. This action may require a fee.

Can I tell my bank to void a check?

You can void a check, but your bank can’t. A financial institution can stop payment on a check (possibly for a fee), and it typically cancels checks once they’re been paid.

How much does it cost to void a check?

Voiding a check is typically something that an account holder does, without a bank’s assistance, for free. A bank may stop payment on a check, however, at the account holder’s request, and this typically involves a fee of $20 to $35.

How do I void a check online?

Many major banks offer the option on their website or in app to generate a voided check image or PDF which can then be printed out. Another option would be to void a paper check, then scan it, and use that as needed online.

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Photo credit: iStock/AsiaVision

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Online and mobile banking can make transactions faster, easier, and more secure. Indeed, the number of Americans who are going all in on managing their finances this way continues to grow. Recent research shows that about 30% of Americans use online-only banks.

Not only that, those who use any type of online banking, whether through a traditional or online-only bank, tend to use it frequently. In SoFi’s April 2024 Banking Survey, which looked at the banking usage of 500 U.S. adults, 48% of respondents said they use online banking daily, and another 26% reported using it several times a week.

Here, take a closer look at online banking, so you can decide if it’s right for you.

Online Banks vs Traditional Banks: What’s the Difference?

Online banking, most generally, refers to the ability to conduct transactions through a financial institution’s web page or app, making it unnecessary to go to a branch. Most banks today offer some form of online banking, and most members, in turn, are accustomed to having that option.

For instance, 63% of respondents in SoFi’s survey said they frequently use online banking to transfer funds between accounts, and 43% said they frequently do mobile check deposits.

Frequent Uses of Online Banking
Check account balances	77%
Transfer funds	63%
Mobile check deposit	43%
Automatic bill payment	40%
View or download account statements	38%
Chat online with customer service	17%

Source: SoFi’s April 2024 Banking Survey of 500 U.S. adults

Often, however, the term “online banking” is used to refer to online-only banking vs. traditional banking, meaning you manage your personal finances completely online.

Since online banks typically have no physical locations and therefore lower overhead, they can often offer consumers a higher annual percentage yield (APY) on deposit accounts and other perks.

Recommended: APY vs Interest Rate: What’s the Difference?

How to Get Started With Online Banking

If you are interested in getting started with online banking, it’s a good first move to compare features and terms at different online banks. Then, you can typically apply online, and the process can take just minutes. It’s wise to have your materials (such as Social Security number and government-issued photo ID) at hand. It may take one to two weeks, however, for your documents and debit card to arrive.

Once your account is up and running, you can begin receiving direct deposits, making transfers, setting up bill pay, and accessing the other features that make online banking so convenient.

What Are the Main Benefits of Online Banking?

To better understand online-only banking, consider these upsides and online banking features:

Higher Interest Rates and Lower Fees

As mentioned, online-only banks tend to offer a higher interest rate on savings accounts and possibly checking accounts, too. As of mid-December 2025, the national interest rate on savings accounts is 0.39%, according to the FDIC. At some online-only banks, however, you can find an APY of around 3.00% or higher on their high-yield savings account vaults.

In addition, these banks may offer lower or no fees. Stashing your cash in one of these banks can be a way to avoid bank fees, such as account maintenance charges and the like.

Bank From Anywhere, Anytime

Online banks are open 24 hours a day, 7 days a week, which means you can take care of transactions after normal bank hours. You can manage your money whenever and wherever.

Widespread ATM Network Access

Most online banks are part of an online network of ATMs, such as MoneyPass or Allpoint. What’s more, these are generally fee-free ATMs. If the financial institution doesn’t partner with an ATM network, they will typically offer to refund ATM fees up to a certain number of withdrawals.

Seamless Digital Tools and Mobile Features

As digital innovators, online-only banks may provide a better user experience when online or in the app. Expect to get the latest tools and access to a wealth of features such as round-up savings programs or a dashboard that helps you track your earnings, spending, and savings.

What Are the Potential Downsides of Online Banking

There are, however, some potential downsides to managing money this way. Consider these potential issues with online banking:

The Lack of Physical Bank Branches

Online banks don’t have physical branches where you can deposit funds or meet face-to-face with a banker to set up accounts, apply for loans, or get a document notarized. If you are a person who wants and appreciates physical locations and this kind of personal connection, you may not be well-suited to digital banking.

Challenges With Complex Services and Cash Deposits

There may be some services that you aren’t able to enjoy with an online-only bank. It may or may not offer credit cards, car loans, and mortgages; you may not be able to deposit cash easily, as you can at a brick-and-mortar bank branch. Every online bank is different, so do your research to see what services they offer.

Is Online Banking Safe?

People may worry about whether online banking is safe. In the SoFi survey, 21% of respondents said they were very concerned about the security of their online bank accounts, and another 21% said they were somewhat concerned. The truth is, traditional banks are no more or less secure than online-only banks, and vice-versa. All are at a very minimal risk of a hack.

How to Choose the Right Online Bank for You?

Choosing the online bank can involve considering which features and benefits are most important to you. You may like the user experience of one bank’s mobile app better than another. One bank might offer a more favorable interest rate, while yet another has a particularly convenient network of ATMs.

It’s a good idea to shop around and compare your options before making a decision.

Recommended: What Do You Need to Open a Bank Account Online?

The Takeaway

Keeping your funds with an online-only bank can offer many rewards. You’re likely to earn a higher interest rate and pay fewer fees, for instance. But those who like banking in person at a branch may choose to stick with a traditional bank. Think carefully about what suits your financial style and needs best.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy 3.30% APY on SoFi Checking and Savings with eligible direct deposit.

FAQ

Is online banking the same as mobile banking?

While both online banking and mobile banking are digital forms of banking, there is a difference. Online banking refers to accessing your accounts using a web browser and can provide a full suite of services. Mobile banking refers to using an app to access your accounts, and, depending on the financial institution, may offer more limited functionality.

Can I deposit cash into an online bank account?

Yes, you can typically deposit cash into an online bank account, but it can require an additional step. Since online banks don’t have physical branches, you may have to deposit into its network of ATMs or at a retailer or buy a money order that you then mobile-deposit.

How do online banks make money?

Online banks may charge lower fees and offer higher interest rates, but they still have ways to make money. Typically, this is from the higher interest charged on lending vs. the interest paid on deposits, as well as from various fees.

Are online banks FDIC-insured?

Yes, most online banks are insured by the Federal Deposit Insurance Corporation, or FDIC, just as with brick-and-mortar banks. Your money on deposit is protected up to $250,000 per depositor, per account ownership category, per insured bank, in the very rare event of a bank failure. However, it’s worth checking with your financial institution to be sure they offer this coverage.

What kind of technology do you need for online banking?

In terms of what kind of technology is needed for online banking, customers typically just need secure internet access and a compatible device, such as a laptop and/or mobile device.

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SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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