The Internal Revenue Service of the United States (IRS) published the inflation adjustments for the fiscal year 2027, with increases in the standard deduction, the child tax credit, and other key benefits for working families.
The new amounts, detailed in the official release IR-2026-133, will apply to returns filed in 2028, not to those submitted next year.
This point is crucial to avoid confusion: those who declare in 2027 —for the income earned during 2026— will continue to use the figures from the fiscal year 2026. The new amounts will take effect for the income generated throughout all of 2027.
Frank J. Bisignano, IRS Commissioner, emphasized the extent of the changes: "Hardworking American taxpayers will continue to benefit from the Tax Cuts for Working Families and will see an increase in credits and deductions with this adjustment."
What changes compared to 2026?
The standard deduction for married couples filing jointly increases by $1,000, from $32,200 to $33,200. For single individuals or married individuals filing separately, the amount rises from $16,100 to $16,600. Taxpayers filing as heads of household will see their deduction grow from $24,150 to $24,925.
The Child Tax Credit reaches a maximum of $2,300 per qualifying child, which is $100 more than in 2026. The refundable portion— the amount that can create a refund even if no tax is owed—also rises by $100, to $1,800 per child.
The Earned Income Tax Credit (EITC) is also increasing: families with three or more qualifying children will be able to receive up to $8,496, compared to $8,231 in 2026. With two children, the maximum is $7,552; with one, $4,573; and with no children, $685.
The maximum tax rate of 37% remains unchanged and applies to single individuals with incomes exceeding $661,375 and to married couples filing jointly with incomes over $793,650.
Practical examples for families in Miami
A Cuban couple with two children who file jointly and have a moderate income could deduct $33,200 initially, reducing their taxable income, and claim up to $4,600 in child tax credit (two children at $2,300 each), of which up to $3,600 would be refundable.
A single mother head of household with one child would start with a standard deduction of $24,925 and could claim up to $2,300 in credits for that child, with $1,800 being refundable. If her income is low, the EITC could add up to an additional $4,573.
What Cubans with parole or I-220A should know
To claim the Child Tax Credit, both the taxpayer and each qualifying child must have a valid Social Security Number (SSN) to work in the U.S. Children identified solely with an Individual Taxpayer Identification Number (ITIN) do not qualify for the Child Tax Credit or its refundable portion. In those cases, only the credit for other dependents applies, which is up to $500.
Cuban individuals with valid humanitarian parole and employment authorization (EAD) can obtain a valid SSN to work, which would enable them to claim these credits if they meet the other requirements. Those with a I-220A document are in a different migratory status and must individually verify their work authorization before claiming any tax benefits.
The adjustments for 2027 are part of the "One Big Beautiful Bill Act" (Public Law 119-21), signed on July 4, 2025, which established the framework for tax cuts for working families, raised the child tax credit to $2,200 starting in 2025, and set annual inflation adjustments, resulting in a credit of $2,300 in 2027.
Since each immigration and tax situation is different, it is advisable to consult a certified tax preparer before filing your return.
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