IRS announces 2027 changes to child tax credit, estate tax exemption and more
By Google News Category Tax ·
The IRS announced Thursday adjustments to tax year 2027, including increases to the standard deduction. NBC6’s Valerie Ryan reports
Americans will see changes to several key tax benefits in 2027, including the child tax credit and earned income tax credit as well as estate and gift tax exemptions.
The maximum child tax credit will rise to $2,300 in 2027, up $100 from 2026. The refundable portion of the credit will increase by $100 to $1,800.
Stream NBC 5 for free, 24/7, wherever you are.
For qualifying taxpayers with three or more children, the maximum Earned Income Tax Credit will increase from $8,231 in 2026 to $8,496 in 2027.
The IRS has also upped the estate tax exclusion to $15.48 million for estates of people who die in 2027, up from $15 million in 2026.
Separately, the annual gift tax exclusion will increase to $20,000 per recipient in 2027, up from $19,000 in 2026. That means an individual can generally give up to $20,000 to another person during the year without reducing their lifetime estate and gift tax exemption.
Originally published by Google News Category Tax
