“The hardest thing in the world to understand is the income tax.” – Albert Einstein

Every year, the IRS reviews marginal tax rates, retirement plan contribution limits, the taxability of Social Security and the estate and gift tax exclusion, to account for changes in the cost of living.  Because some inflation—even at the very modest levels we have seen over the last several years—is expected, adjustments are needed.

Without these adjustments, Congress’ intent in setting a particular tax policy would not be accurately reflected—the effects of the policy would be over- or under-stated.  Unfortunately, the annually-changing parameters add to the increasing complexity of the tax code.

How might the recent adjustments impact you?  Please see the attached 2021 Quick Tax Reference to learn more.

If you have questions, please reach out to us at your convenience. As always, we are here to help.

CAM 2021 Quick tax reference