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The amount you’ll end up paying in income taxes doesn’t have to remain a mystery until you complete your federal return.

With a fundamental understanding of how taxes work and some basic information about your household, you may be able to estimate what your tax liability or refund will be. And with that knowledge, you can better plan your finances for 2026 and 2027.

Read on for a look at what your 2026 taxes might look like, and how your income, filing status, and other factors can impact your bottom line.

What Is an Income Tax Calculator?

A federal tax calculator for 2026 can help you estimate the federal tax you may owe on the income you earn this year. It isn’t meant to replace the tax service or software you usually use to complete your return. But it could help you plan ahead and make informed choices as you prepare for a potential tax bill, or refund, when you file in 2027.

Historical Tax Rates, Compared

Most people think taxes are too high now, but they could be — and have been — much higher. In 2026, the top tax rate is 37% for individuals whose taxable income is over $640,600 ($768,700 for married couples filing jointly). But in 1944, the highest rate — for anyone who made over $200,000 — was 94%. It wasn’t until 1987 that the top rate dropped below 40%.

The current rates, dictated by the Tax Cuts and Jobs Act of 2017, were made permanent in 2025. The tax code, officially called the Internal Revenue Code, is interpreted and implemented by the U.S. Treasury Department and the Internal Revenue Service (IRS), but tax laws are written by Congress.

How Is the Tax Rate Decided?

There are seven federal income tax rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The more taxable income you have, the more you can expect to pay.

That’s because in the U.S., income tax rates are graduated, which means each of these progressively higher tax rates is assigned to a specific income range, rather than a household’s entire taxable income. Each time your taxable income reaches a new level, you’ll pay a higher rate, but only on the portion that’s in that range.

The ranges, or brackets, differ depending on a taxpayer’s filing status (single, married filing jointly, married filing separately, or head of household), as seen in the table below.

Income Tax Rates and Brackets for 2026 Tax Year

Tax Rate	Single Filers	Married Filing Jointly	Married Filing Separately	Head of Household
10%	$0 to $12,400	$0 to $24,800	$0 to $12,400	$0 to $17,700
12%	$12,401 to $50,400	$24,801 to $100,800	$12,401 to $50,400	$17,701 to $67,450
22%	$50,401 to $105,700	$100,801 to $211,400	$50,401 to $105,700	$67,451 to $105,700
24%	$105,701 to $201,775	$211,401 to $403,550	$105,701 to $201,775	$105,701 to $201,775
32%	$201,776 to $256,225	$403,551 to $512,450	$201,776 to $256,225	$201,776 to $256,200
35%	$256,226 to $640,600	$512,451 to $768,700	$256,226 to $384,350	$256,201 to $640,600
37%	$640,601 or more	$768,701 or more	$384,351 or more	$640,601 or more

Source: Internal Revenue Service

If you’re a single filer with $60,000 in taxable income in 2026, for example, you won’t pay your highest tax rate (22%) on that entire amount. You’ll pay 10% on up to $12,400 of your taxable income; 12% on the amount between $12,401 to $50,400 ($38,000); and 22% on the amount between $50,401 and your taxable income of $60,000 ($9,600).

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

How to Calculate Federal Taxes in 2026-2027

Determining your income tax each year is, of course, much more complicated than simply applying the various tax rates to the money you’ve earned.

Depending on the complexity of your return, it may take several calculations to come up with the final amount you owe — or what you’ve overpaid and can expect to be refunded. Whether you’re filing taxes for the first time or you’ve been paying income taxes for years, here’s a quick summary of the basic steps that may go into figuring out your federal taxes in 2026-27:

1. Calculate Your Gross Income

This is the total of all the money you made for the year. Think income from your job, including tips; business income; dividend and interest income; etc.

2. Determine Your Adjusted Gross Income (AGI)

Once you know your gross income, you can subtract certain adjustments, such as alimony payments, student loan interest, health insurance premiums (if you’re self-employed), some retirement contributions, and more to determine your AGI.

3. Subtract Applicable Deductions

A tax deduction is an amount you can subtract from your AGI to further reduce your income and lower your tax. You can either choose to list, or itemize, all the tax deductions that apply to you, or you can take the standard deduction. Most taxpayers go with the standard deduction, which for tax year 2026 is:

•   $16,100 for single filers and married individuals filing separately;

•   $24,150 for heads of households; and

•   $32,200 for married couples who file jointly.

However, you may want to run the numbers to see if it makes sense to go with itemized deductions. Some common deductions that must be itemized but could help further reduce your tax burden include mortgage interest, charitable contributions, and medical and dental expenses. But there are many more options to choose from.

4. Apply the Appropriate Tax Rates from the Table

Once you’ve calculated your taxable income, you can apply the 2026 tax rates. Remember, your entire taxable income won’t be taxed at the same rate; the tax rate goes up at various levels, or brackets.

5. Use Any Applicable Tax Credits

Unlike tax deductions, which reduce how much of your income is subject to taxes, tax credits directly reduce dollar-for-dollar the amount of tax you owe. When you’re preparing for tax season, your tax professional or tax software can help you find your applicable tax credits.

Some common credits include the Child Tax Credit, education credits, the Saver’s Credit for retirement savings contributions, and the premium tax credit that helps eligible individuals and families cover the premiums for their health insurance purchased through the federal marketplace.

6. Don’t Forget What You’ve Already Paid

Keep in mind that you’ve likely had money withheld from your paychecks throughout the year to put toward your federal income tax. Or, if you’re self-employed, you may have been making quarterly estimated tax payments. Once you know what you owe (after applying tax credits), you can subtract what you’ve already paid to get a final tax amount. If the number is positive, you can expect to owe the IRS. If it’s negative, and your calculations are correct, you can expect to get a refund.

How Much Does the Average American Pay in Taxes?

A Tax Foundation analysis of the most recent available data from the IRS (2022) found that the average tax rate for all U.S. taxpayers was 14.5%, and the average amount of income taxes paid was $13,890. The highest-earning Americans paid an effective average tax rate of 26%, while the bottom 50% paid 3.74% of their income to the IRS.

Of course, there are other types of taxes you may also have to pay, including sales tax, property tax, state and local taxes, estate tax, and more. And this means taxes can eat up a hefty portion of your hard-earned money.

Need help managing your finances? A money tracker can help you keep tabs on where your money is coming and going.

Example Tax Scenarios

Your federal income tax bill each year will depend on several factors, including your gross income, your filing status, the deductions and credits you can use to lower the amount you owe, and what you’ve already paid during the year. Here are two basic examples of how taxes might be calculated in 2026 for a single filer with a salary of $80,000 and a married couple with a gross household income of $120,000.

Joe, the Single Filer

Joe has a salary of $80,000 in 2026, so his gross income is $80,000.

He decides to go with the standard deduction in 2026, which is $16,100 for a single filer. This brings his taxable income to $63,900.

Joe then uses the applicable tax brackets.

•   The first layer of Joe’s taxable income, up to $12,400, is taxed at 10%, which comes to $1,240.

•   The next layer of Joe’s taxable income, from $12,401 to $50,400, is taxed at 12%, which comes to $4,560.

•   The next layer of Joe’s taxable income, from $50,401 to $63,900 is taxed at 22%, which comes to $2,970.

Joe would have a total federal income tax of $8,770.

Joe finds a couple of credits he can apply that take another $1,000 off of his tax bill. And he figures out that he will have paid $6,000 in federal income tax withholding for the year.

Joe estimates that he’ll owe $1,770 when he files his taxes 2027, and he’s building that into his budget so that he’s prepared when it’s time to pay. (Tip: An online budget planner can take the guesswork out of budgeting.)

Mary and Sam, Married Filing Jointly

Mary and Sam’s combined salaries in 2026 equal $120,000, so their gross income is $120,000.

They don’t have any kids yet, and they haven’t yet purchased a house. So, they decide to use the standard deduction in 2026, which is $32,200. This brings their taxable income to $87,800.

According to the applicable tax brackets:

•   The first layer of their taxable income, up to $24,800, is taxed at 10%, which comes to $2,480.

•   The next layer of their taxable income, from $24,801 to $87,800, is taxed at 12%, which comes to $7,560.

Mary and Sam would have a total federal income tax of $10,040.

Mary and Sam think they’re eligible for $2,000 in tax credits that they can take off their tax bill. And between them they will have paid $10,000 in federal withholding in 2026.

Mary and Sam estimate that they’ll get a refund of $1,960 when they file their 2026 tax return, and they plan to put that refund toward a down payment on a house in 2027.

Recommended: What Tax Bracket Am I In?

How Federal Taxes Impact You

The U.S. tax system is the federal government’s single largest source of revenue, and compliance with federal tax laws is mandatory. The money taxes bring in is meant to finance various public services, including veterans’ benefits, Social Security, health programs, national defense, education, transportation, and more.

That said, there’s a popular quote from an old Morgan Stanley ad that says: “You must pay taxes. But there’s no law that says you gotta leave a tip.”

For high earners, especially, taxes may be one of the most significant expenses they encounter each year and over their lifetime. But all taxpayers can benefit from understanding how taxes work and from the type of proactive planning that can help them legally hold on to more of their money. Staying on top of any changes can also help you avoid common tax filing mistakes, as many deductions, credits, and income thresholds are adjusted annually for inflation.

The Takeaway

If you have an idea of how much you’ll bring in from various income streams this year, and you’re aware of some of the basic deductions and credits that might reduce the amount you’ll owe, you can use the 2026 brackets to calculate a pretty good tax estimate.

Whether you expect to pay when you file your return or you think you’ll get a refund, calculating your tax bill in advance can help you budget appropriately. And you may even find some additional savings in 2026 and beyond.

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

What will the tax brackets be for 2026?

The IRS has already published the 2026 tax rate table for single filers, married couples filing jointly, married couples filing separately, and heads of household. Each bracket has been adjusted slightly to reflect inflation.

How can you calculate estimated tax payments for 2026?

To calculate your estimated tax, you must figure your expected adjusted gross income, taxable income, deductions, and credits for the year.

Will tax returns be bigger in 2026?

Some taxpayers may qualify for a larger refund on their 2026 return (due in April 2027), thanks to inflation-related adjustments to the tax brackets and standard deduction amounts. Changes to the tax laws could also impact 2027 returns (due in April 2028), but it’s harder to predict what tax bills will look like at that time.

How much is the standard deduction for 2026?

The standard deduction amount depends on your filing status. In 2026, the standard deduction will be $16,100 for single filers and married individuals filing separately; $24,150 for heads of households; and $32,200 for married couples who file jointly.

What is the tax offset for 2026?

A taxpayer’s offset amount can vary depending on the type of debt that is owed.

What is the filing deadline for 2026 federal tax returns?

Federal income tax returns for 2026 are due on Thursday, April 15, 2027.

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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.

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.

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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A tax refund can come as welcome news when it’s time to file your return. But how much can you expect to get back each year? A tax refund calculator can help you figure that out.

Learn how a tax refund calculator works, plus what details impact whether or not you’re overpaying the federal government.

What Is a Tax Refund Calculator?

A federal tax refund calculator looks at your gross income for the year — that’s the amount you earned before any tax withholdings from your paycheck. Then it factors in deductions, including standard or itemized deductions, eligible retirement account contributions, HSA contributions, and any applicable tax credits.

Next, it applies the appropriate tax bracket to your final taxable income to determine how much you owe for the year. Finally, it will subtract any tax payments you made throughout the year, such as those through paychecks or estimated tax payments, from your owed amount. If you overpaid, you’ll be repaid the difference in the form of a tax refund.

How to Track Your Tax Refund

As you prepare for tax season, it helps to understand how long it will take to receive your refund after you file taxes. That way you can account for the funds in your online budget planner for the right time frame, rather than incorrectly assuming when you’ll have that extra cash in the bank.

You can check your federal refund through the IRS website. The information is available more quickly when you e-file your tax return. You can start tracking within 24 hours for a current tax year return or up to four days after e-filing a previous year’s return. If you file a paper return, it can take as long as four weeks to see your refund status.

When you visit the IRS website, be prepared to provide a few basic pieces of personal information: your Social Security number or individual taxpayer ID number; filing status; and the exact refund amount from your return. One of the most common tax filing mistakes is to input the wrong Social Security number, so check your return and refund request carefully before submitting.

How to Calculate Federal Tax Refunds in 2026-2027

Your actual refund amount may vary every year based on changes in your income, eligible deductions, and IRS changes to income tax rates and brackets. So only use a 2025 tax refund calculator for that year’s return, then look for a tax refund calculator for 2026 for this year.

The actual calculation depends on the complexity of your income. For instance, it’s much simpler if you only have W2 income that you’ve already paid taxes on. It can get a little more complicated if you also have things like taxable investment income and self-employment income.

Start with the IRS tax refund calculator to estimate the correct federal income tax withholding. Then you can determine whether or not you’ll get a refund based on how much you’ve already paid throughout the year.

Recommended: 13 Steps to Prepare for Tax Season

How Is the Tax Refund Determined?

The size of your tax refund is determined by the amount of taxes already withheld and the actual tax you owe. If you’ve overpaid throughout the year, the government issues a refund. This applies to several types of taxes, including income taxes and capital gains tax.

On the IRS tax refund calculator for 2025-2026, you’ll need to provide information such as:

•   Tax filing status

•   Eligible tax deductions or credits

•   Sources of income

•   Salary or wages

•   Tax withholdings

•   Estimated tax payments

Once you enter in all of the information, you’ll see your expected tax withholding, how much you will likely owe in taxes, and your projected refund.

Average American Tax Refund

Here is the average federal tax refund by year, using IRS data from late April each year.

Year	Average Federal Tax Refund
2026	$4,151 (projected)
2025	$2,945
2024	$2,852
2023	$2,777
2022	$3,019
2021	$2,870

More than 102 million tax refunds were processed by October 2025, for a grand total of $311.6 billion. The vast majority is refunded via direct deposit.

The average tax refund varies by location. Here’s a comparison of what the average taxpayer in each state received as a refund in 2022, the latest data available.

State	Average Federal Tax Refund
Alabama	$3,357
Alaska	$3,206
Arizona	$3,179
Arkansas	$3,224
California	$3,344
Colorado	$3,142
Connecticut	$3,362
Delaware	$3,048
Florida	$3,852
Georgia	$3,574
Hawaii	$3,011
Idaho	$3,040
Illinois	$3,394
Indiana	$3,028
Iowa	$2,924
Kansas	$3,000
Kentucky	$2,922
Louisiana	$3,577
Maine	$2,656
Maryland	$3,242
Massachusetts	$3,327
Michigan	$3,047
Minnesota	$2,838
Mississippi	$3,491
Missouri	$2,991
Montana	$2,870
Nebraska	$2,935
Nevada	$3,643
New Hampshire	$3,091
New Jersey	$3,317
New Mexico	$2,912
New York	$3,339
North Carolina	$3,077
North Dakota	$3,063
Ohio	$2,874
Oklahoma	$3,213
Oregon	$2,772
Pennsylvania	$3,011
Rhode Island	$2,871
South Carolina	$3,020
South Dakota	$3,004
Tennessee	$3,192
Texas	$3,774
Utah	$3,210
Vermont	$2,816
Virginia	$3,217
Washington	$3,310
West Virginia	$2,834
Wisconsin	$2,737
Wyoming	$3,720

Source: IRS

Example Tax Refund Scenarios

There are several scenarios in which your withholding total is more than you actually end up owing on your tax return. This is usually due to tax deductions and credits. Here are some examples:

•   Tax credits: There are several tax credits that can lower the amount you owe, including the child tax credit and the earned income tax credit. For instance, in 2026, the child tax credit allows eligible taxpayers to deduct up to $2,200 per child who is 16 years or younger. Up to $1,700 can be taken as a refund. So for a family with two kids, that could add as much as $3,400 to your refund (if not already accounted for in your withholding).

•   Tax deductions: Nearly 90% of taxpayers take the standard deduction instead of itemizing eligible deductions. In 2026, the standard deduction is $16,100 for single taxpayers, and $32,200 for those who are married and filing jointly. That can greatly reduce the amount of taxable income you have — and could even drop you into a lower tax bracket.

Another example of a refund is paying taxes when you don’t actually earn enough to owe. There’s a minimum for how much you have to make to file taxes for each filing status.

Recommended: 10 Personal Finance Basics

How Tax Refunds Impact You

It’s usually good news to find out you’re getting a tax refund instead of owing more on your federal return, especially if you’re filing taxes for the first time or recently increased your income. However, it’s also important to consider that when you get a refund every year, you’re essentially overpaying your taxes. Instead of getting a large lump sum after filing, you could adjust your withholding to enjoy a larger paycheck each month.

When you do get a tax refund, resist the urge to immediately spend it and instead make a strategic plan for the extra funds. One potential money move to make is to pay off high-interest debt like credit card balances. A credit monitoring service can show you your current credit score and what actions can improve it. If you have a lot of outstanding revolving credit, using your tax refund to pay off a chunk could boost your score.

The Takeaway

A tax refund calculator can be a helpful tool in figuring out if you can expect any money back after filing your taxes. But keep in mind that you’ll need a smart financial plan anytime you get a windfall amount of cash.

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 can I expect my tax refund 2026 IRS?

Most federal tax refunds are sent within 21 calendar days of filing your return. The fastest way to get your refund is to e-file and choose direct deposit.

Will tax refunds be bigger in 2026?

You could get a bigger tax refund in 2026 if your income doesn’t increase. That’s because deductions and tax bracket incomes increase each year in order to account for inflation.

Are we getting a Child Tax Credit in 2026?

Yes, the Child Tax Credit is still in place for 2026.

Why is my refund so low in 2026?

There are a few different reasons why your refund could be low in 2026. You may not have withheld enough, or some of your deduction and credit eligibility may have changed. If you earned more for the year, you may owe more taxes on that income, resulting in a lower refund.

How long is it taking to get tax refunds in 2026 with a child?

The typical refund timeline for the IRS is 21 days or less, regardless of whether you have a child dependent.

What is the tax offset for 2026?

If you owe any money to the federal government but have a tax refund, they may withhold that money as an offset to put toward the existing debt. This can include things like past-due child support, federal agency nontax debt, and even state income tax debt.

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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 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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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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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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