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.

What is the annual exclusion for gifts in 2024?

The annual exclusion is per recipient, not the sum total of all your gifts. That means, for example, that you can gift $18,000 to your cousin, another $18,000 to a friend, another $18,000 to a neighbor, and so on in 2024 without having to file a gift tax return in 2025.

What is the gift tax limit for 2024?

It’s a good idea to consult with a tax professional for sizable gifts to ensure compliance with tax rules and regulations. For 2024, the annual gift tax limit is $18,000. (That’s up $1,000 from last year’s limit since the gift tax is one of many tax amounts adjusted annually for inflation .) For married couples, the combined 2024 limit is $36,000.