10% of income not over $17,400

15% of income between $17,400 & $70,700.

25% of income between $70,700 & $142,700

28% of income between $142,700 & $217,450

33% of income between $217,450 & $388,350

35% of income over $388,350.

 

If you gift more than $13,000 to a person, you must file a gift tax return and the amount of tax due will be applied against your lifetime “unified credit” amount.  So tax will not be due on the excess of your gift until you have exhausted your unified credit amount.   For 2012, the exclusion amount increases to $1,772,800.  This translates into a maximum, tax-free lifetime gift amount of $5,120,000 through 2012.  Because the gift and estate tax credit has been “unified” again, any unused credit against gifts may be applied against any estate tax that may be due at your death.  Remember, if your lifetime gifts are less than $5,120,000, and the value of your estate is less than $5,120,000 at your death, no estate or gift tax will be do at your death.  If you’re married, and you take the right steps, you may exclude double the individual amounts, meaning you could pass more than $10,000,000 dollars in gifts and estate value without paying any tax.