The IRS has finally released the federal income tax brackets for 2027, giving taxpayers a clearer picture of how much taxable income they can have next year before moving into a higher tax bracket.

The tax rates remain unchanged, but the income thresholds for the seven federal tax brackets have increased as part of the IRS's annual inflation adjustments.

That means some taxpayers may be able to earn more in 2027 without being pushed into a higher marginal tax bracket.

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