Each year brings updates to the federal tax exemptions and mileage reimbursement rates.
The annual gift tax exclusion amount for gifts in 2024 increases to $18,000 per recipient. This means that individuals can make gifts of up to $18,000 to any number of recipients without being required to report the gifts to the IRS. The federal estate tax exclusion has also increased to $13,610,000. Illinois estate tax exclusion remains at $4,000,000.
The reimbursement rate for business mileage has been increased to 67 cents per mile.
It’s important for taxpayers to be aware of these changes as they prepare for the 2024 tax year. Understanding the gift tax exemption and business mileage rate can help individuals and families plan their finances and minimize their tax liability.