The IRS recently released inflation-adjusted exemption and exclusion amounts for 2023. Important exclusion and exemption amounts for 2023 are as follows:
- The annual per donee gift tax exclusion amount increases from $16,000 in 2022 to $17,000 in 2023 (or $34,000 for a married couple).
- The lifetime gift and estate tax exemption amount increases from $12,060,000 in 2022 to $12,920,000 in 2023 (or $25,840,000 for a married couple).
- The generation-skipping transfer tax exemption also increases from $12,060,000 in 2022 to $12,920,000 in 2023 (or $25,840,000 for a married couple).
- The annual exclusion for gifts to a noncitizen spouse increases from $164,000 in 2022 to $175,000 in 2023.
- Additionally, trusts and estates will be taxed at the highest marginal income tax rates starting at $14,450 of taxable income in 2023, up from $13,450 in 2022.
New York has not yet announced its estate tax exemption amount for 2023. Currently, the New York estate tax exemption amount is $6,110,000. The Connecticut gift and estate tax exemption amount will match the federal exemption beginning in 2023.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.