IRS Just Raised the Child Tax Credit for 2027: See Your New Limit
The Child Tax Credit, adoption relief, and EITC are all going up. Here is what families can claim next year.
Claiming family tax credits is a must if you're eligible. Not only can family tax breaks lower your tax liability, but they might increase your refund.
But which credits you qualify for can change from year to year. The amounts of the credits can also change, since many are adjusted yearly for inflation.
For instance, the child tax credit has increased by $100 compared to last year, and that's not counting other family tax breaks. Here's what you can expect for the 2027 tax year (for income tax returns normally filed in early 2028). Read on.
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Child Tax Credit 2027
The federal child tax credit is worth $2,300 per qualifying child for 2027 taxes.
- However, the maximum refundable portion is worth $1,800. That’s more than you could claim for 2026 tax returns.
- Plus, there's another caveat: To claim the CTC, both the child and the taxpayer (parent or guardian) must have Social Security numbers.
For more information about the current child tax credit, see Who Qualifies For The Child Tax Credit?
Note: Don't forget about state child tax credits. Currently, 17 states and the District of Columbia offer their own version of the child tax credit. Check your state's Department of Revenue website to see whether one is available to you.
IRS Adoption tax credit in 2027
The federal adoption tax credit for the 2027 tax year (taxes generally filed in 2028) is worth up to $18,250 (up from $17,670 last year).
The adoption credit might be used for qualified adoption expenses paid to adopt a child and as an exclusion from income for employer-provided adoption assistance. But you can't use the same qualifying expenses for both the credit and the exclusion.
The amount you can claim will also depend on your modified adjusted gross income (MAGI).
- For 2027, the credit phase-out begins at $273,680 and phases out completely at $313,680 or above.
- Additionally, there are a few limitations, including a special needs exception.
The adoption tax credit is also partially refundable, allowing parents to claim up to $5,280 in credits.
For more information, see Kiplinger's report: Adoption Tax Credit: Do I Qualify?
Earned Income Tax Credit (EITC) 2027
The Earned Income Tax Credit is a refundable tax credit that's available to people with earned income below a certain threshold.
How much you get will depend on your filing status, the number of qualifying children in your household, and your earned income.
- For 2027, the credit is worth up to $8,496 (up from $8,231 for 2026) with three qualifying children.
- For those with two qualifying children, the credit is worth up to $7,552 (up from $7,316 from last year).
- If you have one qualifying child, the credit is worth up to $4,573 for 2027 taxes.
- Those with no qualifying children can get up to $685 (up from $664 in 2026).
Additionally, for tax year 2027, you won't be eligible for the EITC if your investment income exceeds $12,600.
Here are the income phase-out amounts for claiming the EITC for tax year 2027.
Number of children or relatives claimed |
Married filing jointly Phase-in Amount |
Married filing jointly Phase-out Amount |
Earned Income Amount |
Maximum Amount of Credit |
Zero |
$18,730 |
$27,684 |
$8,960 |
$685 |
One |
$32,170 |
$60,787 |
$13,450 |
$4,573 |
Two |
$32,170 |
$68,029 |
$18,880 |
$7,552 |
Three or more |
$32,170 |
$72,512 |
$18,880 |
$8,496 |
| Row 5 - Cell 0 | Row 5 - Cell 1 | Row 5 - Cell 2 | Row 5 - Cell 3 | Row 5 - Cell 4 |
| Row 6 - Cell 0 | Row 6 - Cell 1 | Row 6 - Cell 2 | Row 6 - Cell 3 | Row 6 - Cell 4 |
Number of children or relatives claimed |
All other filers Phase-in Amount |
All other filers Phase-out Amount |
Earned Income Amount |
Maximum Amount of Credit |
Zero |
$11,210 |
$20,164 |
$8,960 |
$685 |
One |
$24,660 |
$53,277 |
$13,450 |
$4,573 |
Two |
$24,660 |
$60,519 |
$18,880 |
$7,552 |
Three or more |
$24,660 |
$65,002 |
$18,880 |
$8,496 |
For more information about the EITC amounts for the upcoming tax filing season, see our report: Earned Income Tax Credit: What You Need to Know.
You might also be eligible for an earned income credit on your state tax return.
Several states, the District of Columbia, and New York City offer versions of the earned income credit. Check your state's and/or municipality's Department of Revenue website(s) for more information.
Explore More
- Quiz: Could Your Child's 529 Funds Jumpstart Their Roth IRA?
- Child Tax Credit: How Much Is It?
- The Earned Income Tax Credit
- Adoption Tax Credit: What You Need to Know
