The IRS has announced tax year 2027 annual inflation adjustments for nearly 70 tax provisions, including the tax rate schedules, standard deduction amounts and other tax changes. The standard deduction rises to $16,600 for single filers and married couples filing separately, $24,925 for heads of household, and $33,200 for married couples filing jointly. These are increases of $500, $775 and $1,000, respectively. The maximum child tax credit goes up $100, to $2,300 per child, subject to eligibility requirements. The gift tax annual exclusion increases by $1,000, to $20,000 per recipient. Contact us to discuss how the changes could affect your tax situation and explore tax planning strategies.
