IRS Just Raised the Child Tax Credit for 2027: See Your New Limit

The IRS’s decision to raise the Child Tax Credit for 2027 signals a shift in fiscal policy that could impact disposable income and consumer spending patterns. For middle-market credit professionals, understanding these changes is crucial as they influence borrower cash flow and creditworthiness, particularly for families balancing debt obligations. Anticipating how enhanced tax credits affect repayment capacity helps in assessing credit risk and structuring deals in a landscape where government policy increasingly shapes borrower financial health.