Federal Tax, Tax

Changes to AMT

Among the 2023 inflation adjustments just issued by the IRS are several that affect many higher-income taxpayers, including changes to the Alternative Minimum Tax (AMT). The AMT exemption amount is increasing to $81,300 for 2023 for unmarried individuals and begins to phase out at $578,150. The AMT exemption for joint filers will be $126,500 and begins to phase out at $1,156,300. The annual gift tax exclusion is also increasing from $16,000 in 2022 to $17,000 in 2023. This is the amount you can give (per individual) without using your lifetime gift and estate tax exclusion or owing gift tax. The lifetime exclusion has also been adjusted, from $12.06 million in 2022 to $12.92 million in 2023. Reach out to the Cg Team for more information. © 2022