IRS Raises Child Tax Credit To $2,300, Standard Deduction To $33,200 For 2027
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The IRS announced higher tax breaks for 2027 today, including a larger child tax credit and a $1,000 increase in the standard deduction for married couples filing jointly.
The new amounts are for tax year 2027, generally covering returns filed in 2028. They are not the figures for the upcoming tax filing season.
The maximum federal child tax credit will rise to $2,300 per qualifying child, up $100 from 2026. Up to $1,800 may be refundable, also an increase of $100. Families still have to meet the eligibility requirements; the maximum is not a guaranteed payment.
For taxpayers who take the standard deduction, the 2027 amounts will be:
A deduction reduces the income subject to tax. It does not mean a family receives that amount as a refund.
The maximum Earned Income Tax Credit for eligible families with three or more qualifying children will rise to $8,496, up from $8,231 in 2026. The amount a household can claim depends on its income and other requirements.
Workers with a health flexible spending account will be able to contribute up to $3,500 in 2027. For plans that allow unused money to carry over, the maximum carryover rises to $700.
The IRS said the adjustments cover almost 70 tax provisions. The seven federal income tax rates remain unchanged, while the income cutoffs rise.
