At a glance
- The adjustments generally apply to tax returns filed in 2028.
- The Lifetime Learning Credit phaseout is unchanged: modified adjusted gross income between $80,000 and $90,000, or $160,000 and $180,000 for joint filers.
- Advisors rebuilding 2027 tax projections will use the updated bracket and standard deduction figures from Revenue Procedure 2026-35, while education-credit planning keeps the same income thresholds it has used since 2020.
The Internal Revenue Service released inflation-adjusted figures for almost 70 tax provisions for tax year 2027 in Revenue Procedure 2026-35, including the rate schedules and standard deduction amounts. The adjustments generally apply to tax returns filed in 2028.
The Lifetime Learning Credit phaseout is unchanged: modified adjusted gross income between $80,000 and $90,000, or $160,000 and $180,000 for joint filers. IRS Commissioner Frank J. Bisignano said taxpayers would see larger benefits next tax year, citing the standard deduction, the Child Tax Credit and higher business expensing.
Advisors rebuilding 2027 tax projections will use the updated bracket and standard deduction figures from Revenue Procedure 2026-35, while education-credit planning keeps the same income thresholds it has used since 2020.
Reported by the Tax & estate planning desk from IRS Newsroom. Published . Corrections