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When declining a holiday party invitation, express your desire to attend by saying, "I would love to see you all, but I just don’t feel that I can do that this year." If you have a specific reason, such as a medical issue, you can mention it; however, it's acceptable to simply say "no" without a lengthy explanation. Politely thank them for the invitation, state that you'd love to join under different circumstances, and suggest staying in touch for future gatherings.