Tax Planning Tip: Tax Brackets, Standard Deductions, and Gift Limits 2020 vs 2021

As we look at year-end planning, important factors in your decision making related to 2020 and 2021 are where you fall in the tax brackets and how close you are to exceeding the standard deductions. Knowing where you currently fall in the various brackets will help you determine year-end planning in relation to accelerating income or deductions in 2020, or delaying items until 2021.
Year-end planning is also generally a timeframe for individuals to consider current year gifting and future gifting. The federal annual exclusion for gifts (other than gifts of future interest in property) is $15,000 for calendar year 2021, as it was for calendar year 2020.

Contact your Arnett Carbis Toothman LLP advisor for a more detailed analysis on how the limitations impact your specific situation, or email us at info@actcpas.com.