What are the tax exemption amounts for 2023?

The IRS has come out with the exemption amounts for 2023. Gift and Estate Tax Exemption: The amount you can give during your lifetime, or at your death, and be exempt from federal estate and gift taxes has risen from $12,060,000 to $12,920,000. This means that a married couple could gift more than $25 million in assets tax free.

What is the gift tax exclusion for 2023?

See Annual Exclusion, later. For gifts made to spouses who are not U.S. citizens, the annual exclusion has increased to $175,000. See Nonresidents Not Citizens of the United States, later. skipping transfers remains at 40%. See Table for Computing Gift Tax. The basic credit amount for 2023 is $5,113,800.

What is the 2024 lifetime estate tax exemption?

The 2024 lifetime estate tax exemption is $13.61 million (double for married couples). (In 2023, it was $12.92 million.) This shields most people from having to pay federal gift tax. You report excess amounts beyond the annual exclusion on Form 709, but actual gift tax payment only occurs if the total surpasses the lifetime limit.