Federal Gift, Estate and Generation Skipping Tax Exemption Levels
| Year | Estate Tax Exemption | Generation Skipping Tax Exemption | Lifetime Gift Tax Exemption | Max Estate & Gift Tax Rates |
| 2022* | $12.06 million per person $24.12 million per couple |
$12.06 million per person $24.12 million per couple |
$12.06 million per person $24.12 million per couple |
top rate of 40% |
| 2023* | $12.92 million per person $25.84 million per couple |
$12.92 million per person $25.84 million per couple |
$12.92 million per person $25.84 million per couple |
top rate of 40% |
*adjusted annually for inflation per the American Taxpayer Relief Act of 2012.
Gift Tax Annual Exclusion
Gift tax is a tax on assets passed from one individual to another during life. The annual amount excluded from gift tax is linked to the inflation rate and increases periodically to the nearest $1,000. The gift tax annual exclusion amount for gifts from one individual to another individual (not charity) in 2023 increased to $17,000 per person per donee. This means that you may give up to $17,000 to each of any number of individuals in 2023 without paying tax on those gifts. As an example, a couple with two children may each give $17,000 to each child, for a total of $68,000 without paying any gift tax (2 people x 2 children x $17,000 each = $68,000). A lifetime gift tax exemption may be used for gifts above the $17,000 annual amount.
You can learn more about estate, gift and income taxes and charitable deductions, and also read IRS Publication 950 Introduction to Gift and Estate Taxes at http://www.irs.gov/ .
You can contact the Annie Clarkson Society for more information.
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This web page does not provide legal or financial advice, nor is it a comprehensive review of the topic. You should consult your legal and financial advisors and Clarkson University before making or planning your gift.