Your 2027 standard deduction, in dollars

FRONT PORCH MONEY · Issue #10

Good morning. Today: your 2027 tax deduction in dollars, a bigger gift limit for family, and a scam aimed at veterans.

What changed: The IRS set its 2027 tax numbers on Nov. 5. The standard deduction for married couples filing jointly rises $1,000, to $33,200. For single filers, it's $16,600.

If you're 65 or older, you get an extra amount on top. For 2027 it's $2,100 if you're single, or $1,700 for each married spouse.

What it means for your check: A married couple, both 65 or older, can deduct $36,600 in 2027. A single person 65 or older can deduct $18,700. The separate senior deduction we covered on Nov. 6 is not part of these numbers.

For a couple in the 12% bracket, the extra $1,000 means about $120 less tax. In 2027, that bracket covers couples' taxable income from $25,600 to $104,050. For single filers, it's $12,800 to $52,025.

What to do: Nothing yet. These amounts apply to 2027 income, on returns filed in 2028. The return you file next spring still uses 2026 amounts.

Early in 2027, check that the tax taken out of your pension or Social Security still fits. A tax preparer can run your own numbers.

The best safe yields we found this week. The full table comes every Saturday.

Dollar figures are about one year's interest on $10,000. Rates change often, so check before you open anything. We skip short-term promotions. Annuities aren't bank deposits and aren't FDIC-insured.

In 2026, you can give each person up to $19,000. For 2027, that rises to $20,000 per person. Each limit is for one calendar year.

Gifts at or under the yearly limit are generally not taxable gifts. Tuition or medical bills you pay for someone generally aren't either. If gift tax is ever owed, the giver generally pays it, not the person receiving.

So if you planned a gift for a child or grandchild, there are 48 days left to use 2026's $19,000. The federal estate tax exclusion also rises, to $15,480,000 for deaths in 2027.

The FTC warned about these on Nov. 10. Scammers use details from your profile, like your military history, photos and tagged places.

How it works: One version offers a fake veteran grant. The scammer claims to work for the VA and sends you to a fake website to "qualify." Another uses a fake "fellow veteran" profile to push a surefire stock market win.

How to spot it: A message about your service that you didn't ask for. A request for your Social Security number or VA.gov login. Any promise of guaranteed returns. The FTC says the VA will never message you on social media.

What to do: Limit who can see your posts and contacts. Check any benefit offer by typing VA.gov into your browser yourself. Never let someone you met online direct your investments. Report scams aimed at veterans at VSAFE.gov or 833-38V-SAFE.

A question we hear a lot: "I'm still working in my 60s. How much can I put in my 401(k) next year?"

For 2027, the regular limit is $25,500, up from $24,500. If you're 50 or older, you can add $8,500 more, for $34,000 in all.

If you're 60 to 63, the extra amount is $11,750 instead. That's $37,250 in all. The IRA limit stays $7,500, plus $1,100 more if you're 50 or older.

Not every plan offers catch-up contributions. Ask your plan or HR office what yours allows.

That's it for today. Hit reply and send us your biggest money question. We read every one. Front Porch Money isn't affiliated with the IRS, the VA, Social Security or any government agency.

— The Front Porch Money team

Front Porch Money is general education, not personal financial, tax, legal or investment advice. Some links are from partners who may pay us; see our disclosures.