22 Jan New Tax Rules for Giving in 2024

In January, many families take inventory of their financial situation and plan for the upcoming year. Here are a few updates to current tax law that could impact your personal and charitable giving.

For those age 70½ or older, you now can give an extra $5,000 from your Individual Retirement Account (IRA) to qualifying charities through the Qualified Charitable Distribution (QCD) provision.

• • • The Qualified Charitable Distribution limit has increased from $100,000 to $105,000 per person.
    • A QCD counts toward your required minimum distribution (if applicable) and you do not count the Qualified Charitable Distribution as income on your tax return.
    • Contact Atlanta RMHC to learn more about using your retirement account for charitable giving purposes!

Next, on January 1, the annual gift tax exemption increased from $17,000 per person to $18,000 per person.

• • • This means you can give an unlimited number of people $18,000 in 2024 without having to report the gift on a tax form or pay gift tax.
    • For a married couple who elects to gift split, the annual gift exemption is $36,000.

Finally, the current federal estate and gift tax exemption provision — the amount of your estate you can pass to heirs — is set to sunset after 2025 to its pre-2018 amount, adjusted for inflation.

• • • For 2024, the federal estate and gift exemption is $13.61 million per person ($27.22 million for married couples).
    • Beginning 2026, the inflation-adjusted exemption is expected to be cut in half and return to approximately $7 million per person or $14 million for married couples.

Atlanta RMHC has a volunteer group of financial planners and estate planning attorneys who can discuss strategies to enhance your charitable giving and minimize income, estate and gift tax. If you are interested in speaking with one of the legacy advisors, contact Marissa Greider, Senior Director of Philanthropy, at marissa.greider@armhc.org.