IRS Increases Child Tax Credit to $2,300 and Standard Deduction for 2027: Impact on Cuban Families in the U.S.

The Internal Revenue Service (IRS) in the United States has announced its inflation-adjusted figures for the 2027 tax year, which include higher standard deductions, increased child tax credits, and other essential benefits for working families.

These updated amounts, outlined in the official release IR-2026-133, will apply to tax returns filed in 2028, not the upcoming year.

It's crucial to understand that those filing in 2027—covering income earned in 2026—will still use the 2026 fiscal year's figures. The new amounts take effect for earnings throughout 2027.

Frank J. Bisignano, the IRS Chief Executive Officer, emphasized the significance of these changes: "Hardworking American taxpayers will continue to benefit from the tax cuts for working families, with increased credits and deductions due to this adjustment."

Changes from 2026 Explained

The standard deduction for married couples filing jointly increases by $1,000, rising from $32,200 to $33,200. For single individuals or married people filing separately, it goes from $16,100 to $16,600. Those filing as head 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—which can result in a refund even if no tax is owed—also increases by $100, to $1,800 per child.

The Earned Income Tax Credit (EITC) is also on the rise: families with three or more qualifying children can receive up to $8,496, compared to $8,231 in 2026. With two children, the maximum is $7,552; with one, $4,573; and without children, $685.

The top tax rate of 37% remains unchanged, applicable to individuals earning over $661,375 and joint filers with incomes exceeding $793,650.

Practical Examples for Miami Families

A Cuban couple with two children filing jointly and earning a median income could initially deduct $33,200, reducing their taxable income, and claim up to $4,600 in child tax credits (two children at $2,300 each), with up to $3,600 being refundable.

A single mother filing as head of household with one child would start with a standard deduction of $24,925 and could claim up to $2,300 in credit for that child, with $1,800 being refundable. Low-income earners could additionally benefit from up to $4,573 through the EITC.

Key Information for Cubans with Parole or I-220A

To be eligible for the child tax credit, both the taxpayer and each qualifying child must possess a valid Social Security Number (SSN) for 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 such cases, only the credit for other dependents, up to $500, applies.

Cubans with current humanitarian parole and an Employment Authorization Document (EAD) can obtain a valid SSN for work, enabling them to claim these credits if they meet other requirements. Those with an I-220A document have a different immigration status and should individually verify their work authorization before claiming any tax benefits.

The 2027 adjustments fall under 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, bringing it to $2,300 in 2027.

Since each immigration and tax situation varies, consulting with a certified tax preparer before filing a return is strongly recommended.