What We Know: The IRS is raising federal tax brackets and standard deductions for 2027 to keep up with inflation.
What It Means: Single filers and married taxpayers filing separately will get a standard deduction of $16,600, up $500.
For married couples filing jointly, the deduction increases by $1,000 to $33,200. Heads of household will receive a deduction of $24,925.
The maximum child tax credit also rises by $100 to $2,300.
What’s Next: The changes apply to income earned in 2027, with tax returns filed in 2028.
(Photo provided by the Internal Revenue Service)