The IRS has announced the annual inflation adjustments for the tax year 2021, including tax rate schedules, tax tables and cost-of-living adjustments.
Many amounts will increase for inflation in 2021. The standard deduction will increase to $25,100 for married individuals filing joint returns or surviving spouses, $18,800 for heads of household, and $12,550 for unmarried individuals and married individuals filing separate returns.
The maximum amount of the earned income tax credit (for taxpayers with three or more children) will increase to $6,728, up from $6,660 for 2020. See more.