The SoFi Active Invest ACAT 1% Match Promotion (“Offer”) is governed by the following Terms & Conditions:

1. Offer – Subject to these terms and conditions, eligible customers earn a 1% Match (the “Match”) when transferring at least $20,000 in investments from another brokerage firm into a SoFi Invest Active Brokerage taxable or Active retirement account (Traditional, Roth, or SEP IRA) with SoFi Securities LLC (“SoFi”) during the Offer Period (defined below). The Match is calculated based on the total net dollar amount of incoming settled transfers from another brokerage to an individual SoFi Active Invest during the Offer Period less any outflows or withdrawals, capped at $5,000,000 (“Net Transfers”) and maintained through the end of December 31, 2025 (the “Holding Period”). The Match will be paid in cash after the Holding Period in January 2026 and based on a calculation of 1% of Net Transfers as of the end of the Holding Period End Date, and is contingent on Net Transfers being maintained throughout the Holding Period. The Match will be paid into the same account you transferred investments into. Transfers into multiple Active Brokerage taxable or Active retirement accounts may not be combined to total $20,000.

SoFi also reserves the right to change or terminate this promotion at any time without notice.

Example 1: If you transfer $20,000 into your Brokerage IRA account during the Offer Period, and do not make any additional contributions or withdrawals for the rest of the year, you will be matched 1% equaling $200.

Example 2: If you transfer $40,000 into your Brokerage taxable account during the Offer Period, and make an outflow of $5,000 before the Holding Period End Date, you will be matched 1% of $35,000 equaling $350.

Example 3: If you transfer $20,000 into your Brokerage taxable account during the Offer Period, and make an additional transfer of $5,000 during the Holding Period, you will be matched 1% of $20,000 equaling $200.

2. Offer Period – The Offer Period will run from March 28, 2025 – April 17, 2025. This period may be extended at SoFi’s discretion.

3. Eligibility – The Offer is available to customers who have (1) an existing Active Investing Account in good standing or have successfully opened an account during the Offer Period through SoFi Securities LLC; (2) have successfully transferred at least $20,000 in assets via ACAT during the Offer Period; and (3) maintain an open SoFi Invest account with Net transfers of at least $20,000 through the end of the Holding Period. Only assets received through an ACAT transfer are eligible. The transferred assets must be settled before the end of the Offer Period to be eligible for the Match

4. Limitations – This Offer may not be combined with any other offer. The Match will not exceed $50,000 (equivalent to 1% of up to $5,000,000 in Net Transfers).

SoFi does not accept cryptocurrency transfers, and does not accept stocks that trade on OTC, Pink Sheets, and/or most low-priced securities. Check the Invest platform for any associated stocks you may be interested in transferring – if they appear in SoFi Invest, they are eligible to be transferred.

If SoFi suspects that there may have been fraudulent activity, or a violation of these Terms & Conditions in connection with the Offer, or a violation of the customer agreement, SoFi reserves the right to either decline to grant the Match, or to rescind the Offer. SoFi reserves the right to liquidate any security to make up for any shortfall. SoFi reserves the right to delay granting the Match if there are indications of fraud or a violation of these Terms.

5. Not a Recommendation – The Offer is not a recommendation to buy, sell, or hold any security, nor is the Offer a recommendation or endorsement of any investment strategy. The Offer is not a recommendation that a customer rollover or transfer assets into a SoFi Active Invest account, nor a recommendation for any specific account type. There are many factors that an investor should consider before initiating an ACAT transfer – an investor should consult with a qualified advisor prior to initiating any transfer of assets

Customers that wish to participate in the Offer are acknowledging the offer is not investment advice and are participating in the Offer voluntarily.

6. Taxes – Each investor’s tax situation is unique and SoFi does not give tax advice. Investors should consult a qualified tax advisor prior to making any transfer as sales may affect your tax situation.

The value of the reward you receive may constitute taxable income. SoFi Securities LLC may issue a Form 1099 (or other appropriate form) to you that reflects the value of the Match. Please consult your tax advisor. SoFi Securities LLC and its affiliates and associates do not provide tax advice.

7. Other Disclosures – SoFi reserves the right to change the Offer terms or terminate the offer at any time without notice. The offer is not transferable, saleable, or valid in conjunction with certain other offers and is available to U.S. residents only. The Offer is only available for personal use, and may not be used for commercial purposes. Clearing and custody of all securities are provided by APEX Clearing Corporation. Any disputes regarding this Offer shall be resolved in accordance with the customer’s brokerage agreement with SoFi and FINRA arbitration rules.

INVESTMENTS ARE NOT FDIC INSURED, ARE NOT BANK GUARANTEED, AND MAY LOSE VALUE

Possible Second Wave

Last week we got important jobs data, this week we get important inflation data. Both are important drivers of financial markets, but just how influential each is depends on investors’ view of its risk to the Federal Reserve’s dual mandate of maximum employment and price stability. If perceived risks are greater with inflation than the labor market, market volatility tends to be higher when price data is released versus jobs data. That’s where we find ourselves now.

Evaluating underlying inflation is tough to do early in the year, however, since inflation has had a tendency to come in hot early in the year before moderating. This entrenched seasonal pattern has made it hard to separate actual inflation developments from month–to-month noise, adding a layer of complexity to this week’s data.

Complicating matters even further is the potential impact of the Trump administration’s tariff policies. While it could be premature for these measures to appear in official inflation metrics, several CEOs have said explicitly that they’d increase prices on goods affected by tariffs. And given that the United States sources over 40% of its imports from Mexico, Canada, and China – the targets of those tariffs – the potential for higher prices and a second wave of high inflation is real.

Though economic growth estimates have turned negative over the last two weeks, persistent inflation pressures could prevent the Fed from lowering interest rates. This dynamic of lower growth and higher inflation would be classified as stagflationary (see the first half of 2022 for a reminder), and would have significant implications across asset classes.

Bond markets are particularly sensitive to inflation surprises, while stocks demonstrate varying degrees of inflation resilience. For example, defensive sectors such as Consumer Staples or Utilities typically weather inflationary environments better than more discretionary-based businesses, and certain assets like gold generally see a boost as well. Still, maintaining perspective is essential. Individual inflation readings provide important insights, but it’s the broader trend that will matter most for the future of markets and interest rates.

Economic and Earnings Calendar

Monday

•   February New York Fed Survey of Consumer Expectations: This is a measure of peoples’ expectations for inflation, jobs prospects, earnings growth, and more.

•   Earnings: Oracle (ORCL)

Tuesday

•   February NFIB Small Business Optimism: This measures how small business owners feel about current and future economic conditions.

•   January Job Openings: A key measure of business demand for labor is the number of job openings, since reducing openings is easier and preferable to layoffs.

Wednesday

•   February Consumer Price Index: The CPI is one of the most popular indicators for tracking consumer price trends and is a marquee release for market watchers.

•   February Treasury Statement: This summarizes the U.S. federal government budget by tracking government revenues and expenditures.

•   Weekly Mortgage Applications: Mortgage activity gives insight on demand conditions in the housing market.

•   Earnings: Adobe (ADBE), Crown Castle International (CCI)

Thursday

•   February Producer Price Index: The PPI tracks price trends that producers face and is down significantly from its peak earlier in the cycle.

•   Weekly Jobless Claims: This high frequency labor market data gives insight into filings for unemployment benefits. Jobless claims have continued to show a labor market that remains strong despite having cooled.

•   Earnings: Dollar General (DG), Lennar (LEN), Ulta Beauty (ULTA)

Friday

•   March University of Michigan Consumer Sentiment: How consumers feel about economic conditions affect their spending habits. This survey places a particular focus on inflation and its trajectory.

•   Earnings: Jabil (JBL)

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

This article appeared in SoFi's On the Money newsletter. Not getting it? Sign up here.

Ok, question for you. It’s tax season, but do you know the difference between a tax credit, tax deduction, tax exemption, tax break, and tax loophole?

Our tax system is so complicated that most of us don’t fully understand the distinctions. And these terms get thrown around a lot — and are even used interchangeably — which adds to the general confusion this time of year.

But the next time filing tax returns comes up in conversation, you can be the voice of clarity. After all, it’s to our collective benefit to have an understanding of how taxes work, especially when we’re talking about serious money. So here’s a quick primer:

Tax credits, deductions and exemptions are all types of tax preferences. They encourage or reward certain types of behavior seen as beneficial to society or the economy, like buying a house or an energy-efficient car. They can also give people in select groups an advantage, like parents with children.

Tax credit: A tax credit reduces what you owe dollar-for-dollar. Most credits can’t reduce your tax bill to less than zero and are known as non-refundable. The exceptions are refundable tax credits like the Earned Income Tax Credit. If you’re eligible for one of these, you can get money from the IRS even if you don’t owe any tax. So, for example, if your tax bill is $1,000 before applying a $2,000 tax credit that’s refundable, you’d get a $1,000 refund. (Here’s a complete list of available credits.)

Tax deduction: A tax deduction is an amount that you can subtract from your taxable income. So rather than pay taxes on your total income, you only pay taxes on some of it. Everyone gets to subtract something from their taxable income. They either take the so-called standard deduction — a flat dollar amount set by the IRS each year and based on your tax filing status — or they can add up individual expenses or losses that are eligible for deduction. (Here’s a list.) This is called itemizing deductions.

Tax exemption: A tax exemption is like a tax deduction, though you don’t hear the term as much these days. In 2018, the Tax Cuts and Jobs Act suspended the deduction for personal exemptions through 2025, replacing it with a higher standard deduction. The term is still often used in business, however. Some charitable organizations, for example, are exempt from paying income tax.

Tax break or tax loophole: These terms usually refer to some sort of tax benefit such as a credit, deduction, exemption or preferential tax rate.

OK, pop quiz: If you’re paying 10% on $10,000 of income, which is more valuable — a $1,000 tax credit or a $1,000 tax deduction?

If you answered tax credit, you’re right! A $1,000 tax credit is worth $1,000 whereas a $1,000 tax deduction means you’re paying 10% of $9,000 rather than 10% of $10,000, saving you $100.

So what? Sixty-four percent of people couldn’t answer that quiz question correctly in a recent Tax Foundation survey. So you’re already ahead of the game. And as mind-numbing as taxes may feel, understanding the big picture — including the lingo — can make a difference to your bottom line.

Related Reading

•   Tax Truths: Elevate Your Financial IQ (Tax Foundation)

•   8 Tax Deductions You Didn’t Know You Qualified For (CBS News)

•   5 Things to Do If You’re Filing Taxes for the First Time (SoFi)

photo credit: iStock/sturti

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

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