JCT Outlines Inflation-Adjusted Thresholds From Changes in Fiscal Cliff Bill

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The newly inflation-indexed exemption amounts for 2013 are $5.25 million per person for the estate and gift tax and $51,900 for individuals affected by the alternative minimum tax, the Joint Committee on Taxation says in an overview of the American Taxpayer Relief Act. For married couples filing jointly, the AMT exemption level has risen to $80,800 for tax year 2013, JCT says. The changes result from Congress's decision to permanently index the estate and gift tax and AMT to inflation, eliminating the annual need for lawmakers to pass a short-term “patch” to keep the tax from impacting more than 20 million additional middle-class households.

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