All About Tax Return Filing Online
Online tax filing eliminates the need for going through the tiring steps of rushing to the local IRS offices and post offices and waiting in never ending lines to mail the documents before the due date. Online tax filing has also reduced the time gap prior to receiving your tax refund, and papers can be printed on demand to maintain precise records for future reference. Online tax filing also facilitates tax payments using credit cards, which can give additional bonuses such as free travel points. Online income tax filing is generally free if individuals file tax returns themselves, and millions of people file taxes online each year. It’s easy with so many online tax filing software applications to choose from. One statistic states that during the first quarter, nearly 39 percent of respondents to a survey said they planned to file their federal taxes online this year, up from 37 percent last year and approximately 28 percent three years ago.
Tax filing is a stressful and confusing procedure for most people. It becomes a daunting task to successfully and accurately file taxes with the IRS when a large number of exemptions and deductions have to be taken into considerations. There are a lot of questions raised that can cause doubt in the minds of many people when it comes to calculation of income tax. Sometimes, calculating federal and state taxes can prove to be tough. Other issues like residing in one state and working in another can cause confusion related to the place of filing the taxes. Uncertainty regarding the filing of taxes when a family shifts from one locality to another may also arise.
In order to minimize the confusion and tension of successfully filing taxes with the IRS an individual can either approach a tax professional for help. They complete all the formalities ranging from calculation of taxes to filling forms and submission to proper authorities. They professionally handle tax filing and the client pays them a fixed commission after the job. It is advisable that people prepare and file taxes themselves, as it is less expensive. Tax preparation software is easily available online and quicken the process of filing taxes.
The Benefits of Online Tax Filing
Each year, the benefits of online tax filing gets better and better. For example, in 2007, the IRS has set up “Free File”. This program allows individuals who make less than $52,000 a year to file their taxes online free. In other instances, the price of filing online is as low as $19.95.
Other than the price of online tax filing, you’ll find that filing your taxes on your own is much easier with eFile. You’ll simply have to gather your W2s, 1099′s and other documents and you’re ready to go. Usually, you’ll be using tax filing software or web-based programs online. These programs will walk you through the steps, including the forms you will use, like the 1040A or 1040EZ. And if you need help, all you have to do is click a button. Even individuals who have never filed taxes before can quickly fill in the blanks with the step-by-step instructions given.
If you prefer to file your taxes with an accountant or tax specialist, eFile will come in handy when it comes to receiving withholdings or paying taxes that are due. To use eFile, just tell your tax professional that you’d like to eFile your taxes this year. When you file your taxes online, you have the choice of receiving your refund by direct deposit. Simply fill in your routing number and checking account number when asked. The best part is that your money will arrive in about half the time it normally takes. Plus, you can skip the line at the bank!
