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Estate, Gift, Income Tax Amounts Increased for 2019

Last update on: Jun 22 2020

The IRS announced the annual inflation increases for various tax provisions as of January 1, 2019.The lifetime estate and gift tax exemption has been increased to $11.4million (from $11.18 million). A couple can jointly exclude $22.8 million.

The annual gift tax exclusion remains$15,000 for 2019.The standard deduction for married couples filing jointly is $24,400 (up from $24,000). For single taxpayers, itis $12,200 (up from $12,000). Remember, the personal exemption amount was eliminated for years after 2017.

The top tax rate of 37% begins for married couples filing jointly with taxable incomes exceeding $612,350($510,300 for singles). The 24% bracket begins with taxable income of $168,400 for married couples ($84,200for singles). The 22% tax rate begins with taxable income of $78,950 for couples ($39.475 for singles).

The annual tax-deferred contribution to 401(k) and similar plans is increased to $19,000 from $18,500.The catch-up contribution for those ages 50 and older remains at $6,000.Total contributions to 401(k) plans are limited to $56,000 ($55,000 in 2018).

The IRA contribution limit has increased to $6,000 from $5,500. The contribution limit is the same for traditional and Roth IRAs. If you contribute to both types of IRAs, the aggregate contributions can’t exceed $6,000.



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