Families with children and households with low to moderate incomes will be impacted by several adjustments taking effect for tax year 2026. The IRS has updated both the Earned Income Tax Credit (EITC) and other benefits tied to children and dependents, with the goal of mitigating the effects of inflation and strengthening support for specific taxpayer segments KPMG+1

Increase in the Earned Income Tax Credit (EITC)

The EITC is one of the most significant refundable credits for low- to moderate-income households that meet certain requirements related to income, family structure, and residency status.

For tax year 2026, the maximum EITC amount for those who qualify with three or more children increases to approximately USD 8,231, according to inflation-adjusted figures. KPMG

This adjustment may result in:

• Larger refunds for eligible taxpayers.
• Greater importance of proper tax planning to avoid losing the credit due to income thresholds, filing status, or incomplete documentation.

It is important to highlight that the EITC is subject to strict requirements, particularly regarding:

• Type of income.
• Annual income levels.
• Number of qualifying children.
• Specific rules for nonresident taxpayers or those with international structures.

Adjustments to Child and Dependent-Related Credits

Beyond the EITC, several credits related to children and dependents are also being updated for inflation in 2026. This includes income limits and applicable amounts for certain benefits aimed at taxpayers who financially support minors or dependents. IRS+1

In practice, these changes may affect:

• The total amount of credits that can be claimed on the tax return.
• The eligibility of households whose income is close to the established limits.
• Whether it may be more beneficial for a couple to file jointly or separately.

Importance of Documentation and Pre-Filing Analysis

With multiple credits at stake, documentation management becomes critical:

• Certificates and records for children or dependents.
• Proof of residency and household relationship.
• Income statements, withholding records, and benefits received.

Any error in classifying dependents or applying credits may result in losing benefits or, in some cases, triggering a later IRS review.

At ACMM Consulting, we continue to closely monitor IRS updates and leverage our expertise to help clients minimize the impact of this situation on their tax obligations and fiscal planning.
For personalized guidance, contact us via WhatsApp al +1 (305) 924-2374 or email us at info@acmmconsulting.com.

Official Sources
IRS – “IRS releases tax inflation adjustments for tax year 2026, including amendments from the One Big Beautiful Bill”
KPMG – “United States – Inflation Adjustments for Tax Year 2026”

The information contained in this article is for general informational purposes only ACMM Consulting, Inc. is not responsible for any decisions made by readers without proper professional advice. Each business situation is unique and requires individualized analysis.