Wednesday, September 25, 2019
The Internal Revenue Service has announced the inflation adjustments for the estate and gift tax exclusion, the generation-skipping transfer tax exemption, the gift tax exclusion and other estate planning rates for 2020.
- The federal estate and gift tax exclusion amounts will increase by $180,000, from $11.4 million to $11.58 million.
- The generation-skipping transfer (GST) tax exemption will also going to be $11,580,000.
- The annual gift tax exclusion will remain the same at $15,000 per donor per donee per calendar year.
- Trust and estate income tax rate brackets have also been released.
- If income is less than $2,600, the tax is 10% of taxable income.
- If income is over $2,600 but not over $9,450, the tax is $260 plus 24% of what is over $2,600.
- If income is over $9,450 but not over $12,950, the tax is $1904 plus 35% of what is over $9,450.
- The highest bracket comes in at amounts over $12,950, in which the tax is $3,129 plus 37% of the excess over $12,950.
See James V. Roberts, Inflation Adjusted 2020 Figures Announced, JamesVRoberts.com, September 25, 2019.