what is the annual gift exclusion for 2022 
the annual exclusion for gifts is 16 000 for 2022 and 17 000 in 2023 17 that means you can give up to 16 000 or 17 000 tax free to as many people as you wish without using any of your lifetime gift and estate tax exemption who qualifies for tax breaks broadly speaking many tax breaks favor individuals with lower income many tax deductions and credits phase out as an individuals income increases meaning a person may only receive a partial amount of a tax break eventually taxpayers with income too high will not quality for certain tax breaks in addition many tax breaks are designed for specific economic activity for example to incentive workers to contribute to their retirement accounts certain contributions may receive favorable tax treatment these types of tax breaks can be obtained by simply engaging in the qualification requirement the bottom linethe ultimate goal of many is to reduce their tax liability owed to the federal government individuals corporations and nonprofit entities all leverage tax breaks that exclude some income from being taxable allow for parts of net income to be deductible and permit certain credits to directly reduce taxes owed in general it s advisable to pursue tax breaks to limit your tax exposure 