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.

How much is a gift tax exemption in 2023?

For non-citizen spouses, the marital deduction is $175,000 for 2023. Annual Exemption: In addition to the lifetime exemption, there is also an annual gift tax exemption. That annual exemption goes from $16,000 to $17,000, in 2023 for each person you make a gift to in 2023.

How much is tax deductible if a gift exceeds 2024?

The government also exempts $13.61 million in 2024 and $12.92 million in 2023 in gifts from tax over a person’s lifetime. However, if an individual gift does exceed the annual exclusion, you’ll need to file a Form 706 and report the gift to the IRS.