03 Jan Lifetime Estate & Gift Tax Exemption Increases

01.03.2023

Welcome to Eagle & Fein, P.C. 

The IRS announced changes to annual exclusion gifts. Beginning in 2023, gifts of up to $17,000 can be made to as many people as you wish. This will NOT impact your lifetime gift and estate tax exclusion or cause you to pay any gift tax. Couples may gift $34,000 ($17,000 each) annually (compared to $16,000 each in 2022).

Another change is to your lifetime estate and gift tax exemption (unified credit). The amount will increase from $12.06 million to $12.92 million in 2023. Couples will be able to pass on a total of $25.84 million without creating a gift tax liability.

If a couple has already maxed out their lifetime gifts, in 2023 they can give an extra $1.72 million to their families. This is in addition to making $34,000 per couple in annual gifts to anyone they choose!

You can find all the new IRS numbers in Revenue Procedure 22-38.