Best Personal Finance Software 2021: Maximizing Your Tax Deductions

As we approach the end of the year, it's essential to take stock of your finances and ensure you're making the most of your tax deductions. With the ever-changing tax landscape, it can be challenging to keep track of what's deductible and what's not. In this article, we'll explore some of the best personal finance software options for 2021 that can help you maximize your tax savings.

Medical Mileage Deductions

One often-overlooked deduction is medical mileage. As of July 1, 2022, you can deduct 22 cents per mile for travel to and from medical appointments. For trips made prior to June 30, 2022, the rate remains at 18 cents per mile. Be sure to keep a record of your trips, including dates, destinations, and mileage, as this will be crucial when filing your taxes.

Charitable Contributions

Donating to charitable causes is not only a great way to give back but also a valuable tax deduction. For cash donations, you can deduct up to 60% of your adjusted gross income (AGI). Additionally, donations of items or property are considered deductible charitable contributions.

Mortgage Interest and Property Taxes

As a homeowner, you may be eligible for deductions on mortgage interest and property taxes. The good news is that these expenses are generally tax-deductible, but there are limits to keep in mind. For the 2022 tax year, you can deduct state income taxes paid, with a cap of up to $10,000.

State Taxes Paid

Another often-overlooked deduction is state taxes paid. As mentioned earlier, this is capped at $10,000 for the 2022 tax year. Be sure to keep a record of your state tax payments throughout the year, as this will be essential when filing your taxes.

Best Personal Finance Software Options

To make the most of these deductions and stay on top of your finances, consider using one of the best personal finance software options for 2021. Some popular choices include:

* TurboTax: A user-friendly option that offers a range of features, including deduction tracking and tax preparation.

* H&R Block: A well-established brand that offers a variety of personal finance tools, including tax preparation and investment tracking.

* QuickBooks: A comprehensive accounting software that can help you track expenses, income, and deductions.

By taking advantage of these deductions and using the right personal finance software, you can maximize your tax savings and set yourself up for financial success in 2021.

Best personal finance software 2021