Now is the time to switch to Online Tax Filing, if you have not done it already
Gone are those days when tax filing used to be a tedious job with meeting a tax preparer, filing out tax returns manually, sending your returns to the IRS, etc. Today, everyone wishes to perform their tasks quickly without investing much time and conveniently as well. Now, this is also applicable to the procedure used for tax filing.
If you wish to complete your tax filing easily without facing any inconveniences, the best method to opt for is online tax filing or e-filing. By online tax filing, you would be able to file your tax returns easily by the electronic medium without the need of commuting to anywhere or mailing anything.
Benefits of e-filing taxes
Some of the major benefits of the online tax filing method can be noted below.
- Online tax filing or e-filing is the most secure means to deliver your tax returns to the IRS.
- Confirmation from the IRS is sent once your e-filing is done. This gives you a sense of mental peace that your tax returns have been received successfully.
3. By e-filing your tax return, you will be obtaining your returns very soon i.e. within around 21 days of filing. So, e-filing is the fastest and easiest method to obtain your tax refunds.
4. Moreover, e-filing is less expensive as compared to other methods of tax filing.
The Rise of e-filing
In 1986, e-filing began as a pilot project in Cincinnati, Phoenix, and N.C. In that particular year, the number of tax returns filed by e-filing was 25,000. Gradually, the number of Americans using the e-filing method started increasing.
During 2010, 141.5 million income tax returns were filed by the taxpayers out of whom 70% was done electronically.
Due to the different benefits offered by the e-filing method, more and more taxpayers are willing to use this method for filing their tax returns. In the last decade, the number of taxpayers opting for e-filing has increased by around 145%. Since 1990, the IRS has processed approximately 1 billion income tax returns securely filed by e-filing.
In 2011, the IRS had also taken certain initiatives to encourage people for e-filing. The IRS had sent postcards to those taxpayers who had filed their tax returns by paper. The announcement was that the IRS would no longer be mailing paper tax packages to the taxpayers.
How does e-filing work?
For the low and middle-income taxpayers, the IRS has a tool known as IRS Free File. This tool can be accessed on the official website of IRS i.e. www.irs.gov. By this tool, it is easier for the taxpayers to make tax preparation online and also do e-filing at absolutely no cost.
This program or tool of the IRS is created by a partnership between public and private organizations i.e. the Federal Government and the private companies
which are engaged in tax preparation. Those companies which participate in this partnership must exhibit adherence towards strict privacy guidelines.
Americans having an adjusted gross income (AGI) of $57,000 or below that are eligible to select the best amongst the available online tax preparation services. Moreover, a taxpayer can also make use of the Free File Fillable Forms which are available on the official web page of the IRS. This is a free form which can be said to be the Form 1040 electronic equivalent. It takes the numbers as the input and performs the calculations.
After the e-filing of tax returns
- Once the returns have been submitted by e-filing, the IRS will be reviewing your returns. This review procedure can take almost 48 hours.
- If your returns submitted match all the personal information, and then your return is accepted.
- After your return has been accepted and there is a refund due, you would obtain a refund within 21 days.
4. In case, your return submitted does not match with your personal information, your return would be rejected by the IRS. You can make the error corrections and re-submit your return again.
While e-filing your tax returns, you would be able to select the delivery method of your tax refund. Usually, it is advisable to select the Direct Deposit method as refunds are sent quite faster by this method.
Hence, e-filing is the norm nowadays. It is an easy, convenient and secure method to get back your money. So, if you have not tried it yet you can give it a try this time!!