U.S. Gift Tax Exclusion Increases in 2022

U.S. Gift Tax Exclusion Increases in 2022The annual exclusion on the federal gift tax will increase to $16,000 in 2022 from 2018 to 2021 the exclusion was $15,000. The general rule is that any gift is a taxable gift, except for:

  1. Gifts that is not more than the annual exclusion for the calendar year.
  2. Tuition or medical expenses you pay for someone (the educational and medical exclusions).
  3. Gifts to your spouse.
  4. Gifts to a political organization for its use.

In addition, gifts to qualifying charities are deductible from the value of the gifts made. Contact experienced New York estate planning attorneys Friedman & Ranzenhofer, PC at (585) 484-7432 to prepare your estate plan and protect your assets.