The IRS began to accept tax returns on January 24 and has already sanctioned nearly 38 million refunds as of March. An average of almost $3401 has been refunded through March 4.
If you are a resident of the US and are hustling with your tax returns, you have come to the right place. Although the process is challenging and some may find it complicated, eFiling for individuals is a more straightforward, faster, and safer means to file tax returns.
Individuals can use eFiling for both federal and state taxes. The federal and state government has separate software that allows individuals to file their taxes electronically and send them to the government.
Continue reading to learn more about eFiling, why should you consider it over in-person filing, its benefits and how we, at AOTAX can help you.
Reasons to Use eFiling for Tax Returns this Season
Taxes can be filed in many ways: some fill out Form 1040 or Form 1040-SR by hand and mail it. However, many find it convenient to hire a tax preparer to file the returns, which may be expensive.
The most straightforward way to file taxes is through eFiling using filing software. Here are some perks of eFiling for individuals:
Ease of use and flexibility
When filing taxes manually, one has to fill them out in person and mail it to the government or walk into the tax return office during 9-5 working hours to get it done.
With eFiling, individuals can file tax returns at home at any time. This is more convenient and flexible for many who do not have the liberty to take time off to go to the office or send the forms over mail.
Saving time and money
Efiling tax returns directly send your data to the server systems of the IRS immediately. This eliminates the need for sending mail to the IRS, which can take days.
This also eliminates any transmission errors or unprecedented delays, or lags. As a result, eFiling is easier for both taxpayers and tax agencies as it is easier and faster.
Efiling eliminates errors with record matching, transmission errors, or other manual errors from mailing tax return forms or filing them in person.
This is essential to get maximum returns of taxes.
With eFiling, individuals can upload all the necessary documents and the data and run mathematical accuracy tests to assess if figures are aligned.
Using eFiling software can especially come in handy. The software can help assess typos, check mix-ups, and ensure that the IRS accepts the predicted refund amount and is processed on time.
Reduced data manipulation
Many risks of filing tax returns manually come with data manipulation and window dressing. With eFiling, it becomes impossible to manipulate data. In addition, linking or tracing back the taxpayer also becomes more accessible with eFiling.
One of the reasons e-filing is more safe, according to the IRS, is that your information is never in a hard copy version unless you print it off. Because there is no physical copy, there is less possibility that someone will look at your information when you are not present.
According to Mark Steber, the chief tax information officer at Jackson Hewitt, this also eliminates the risks of tax refund theft and identity theft caused by manual filing.
Authentic and accountable
Efiling has made taxpayers and tax agencies more accountable and authentic. However, the paper filing comes with high ambiguity, leaving taxpayers and tax agencies to treat tax returns with lethargy and negligence.
Efiling comes with frequent and periodic notifications that allow people to know if their tax returns are approved or denied, giving more certainty to the process.
This helps individuals do what is necessary in case of a denied request.
A tax expert and certified public accountant said that 9 out 0f 10 tax returns were issued by the IRS within 21 days when filed electronically. In addition, Mark Steber said that eFiling is the fastest and safest way for taxpayers to have their refund directly deposited into their bank account.
With eFiling, most refunds are issued within 21 days either directly to the bank account mentioned in the forms or as a paper check which can take longer.
However, filing tax returns in person can take weeks or even months to reflect in your bank account and can take up to two months to receive a paper check.
Tax experts recommend using eFiling for individuals to file taxes and consider filing them earlier to get faster returns.
Efiling for Individuals with AOTAX
AOTAX has helped many Indians in the USA file their tax returns using eFiling. AOTAX helps its users by filing individual taxes and getting tax drafts within 24 hours of filing. We also help Indian professionals working in the US with eFiling services with high accuracy and success rate.
If this is the first time you’re filing tax returns or if you find it complicated to file them, we can help you create a tax draft, making it more straightforward, fast, and cost-effective to file your taxes. Reach out to us to easily file your taxes electronically with AOTAX.