10/21/2026
Higher inflation is mixed news for taxpayers
Many federal tax breaks will increase in 2027. Others stay stagnant, as they have for years. Income tax brackets will be wider in 2027 because they are annually indexed to inflation. Other tax breaks could also rise. Among them: Standard deductions. Child tax credit. Adoption credit. AMT exemptions. Income limits on U.S. savings bonds that are used for education. Annual gift-tax exclusion. Lifetime estate-and-gift-tax exemption. Income levels for figuring whether long-term capital gains are taxed at 0%, 15% or 20%. The foreign earned income exclusion. And many more breaks. A stealth 2017 tax hike takes away some of the inflation tax benefits.
https://satty.com/tax-tips/higher-inflation-is-mixed-news-for-taxpayers