Did you know that e-filing (filing your taxes electronically) has been around for 25 years? In 1986, five tax preparers from various U.S. cities e-filed 25,000 tax returns. In 2011, over 79% of all individual income tax returns were e-filed. That’s over 100 million people!
Efiling is more popular than ever. In fact, the IRS highly recommends that you efile your tax returns. If you are not among the two-thirds of Americans who already efile tax returns, here are the top 7 reasons that you should choose efiling over traditional filing:
7 Reasons to File Your Taxes Electronically
1. Efiling Is Easier
You don’t need previous knowledge of complicated tax laws to efile. All you have to do is answer a few easy-to-understand questions during a simple online interview, which is often part of the tax software. The software will make sure you do not miss any important information, such as tax credits and deductions.
2. Efiling Is Faster
If you efile, the IRS receives your tax return instantly, and you’ll generally receive a confirmation of acceptance or rejection within 48 hours. You can receive your tax refund in half the time it would have taken if you filed a paper return. With a direct deposit, it can take as little as eight days if the IRS accepts your return.
3. Efiling Is Accurate
According to the IRS, efile returns have a 1% error rate, while paper returns have an error rate of 20%. Efile returns also eliminate the possibility of transcription errors that sometimes occur with paper returns, since an IRS employee will not have to enter your data into the computer system by hand.
4. Efiling Is Secure
With efiling, there is nothing getting lost, damaged, or stolen in the mail. You can confidently submit your tax return to the IRS and keep your personal information safe.
5. Efiling Is Convenient
The IRS says that at the IRS (and most U.S. states), you can file early and pay any balances due before tax season in April. You can also check your tax return and tax refund status online, from anywhere and at any time throughout the year.
6. Efiling Is Good for the Environment
Efiling eliminates endless printing of forms that leads to wasting paper and ink. You don’t have to drive to the post office either-do everything at home and decrease carbon monoxide fumes!
7. Efiling Is a Good Way to Avoid Penalties
Even if you cannot afford to pay all of your taxes by the April deadline, you should still efile your tax return to avoid penalties for not filing on time. This includes interest charges that could increase your tax bill by 25% or more.
Why do you prefer efiling over traditional tax return filing? Share your comments below!
Bio: Jacquelyn works and writes for efile.com, a company that provides an online platform for tax return preparation and secure electronic filing. They aspire to be a less expensive and more user-friendly alternative to the big online tax companies, with all of the same capabilities and more benefits.