The days of filing taxes are done with pencil and paper and trying to grasp the form demands. Doing your taxes online with an e-file is not only faster these days, but also better than manually filing them.
In fact, the Internal Revenue Service allowed you to file electronically and announced this month that home computers self-prepared e-filed tax returns were up 7.5 percent from last year.
Here are some of the many advantages of filling out taxes online. Read on to learn more.
Once you file online, the process becomes much faster. With each form you’re filling out, you won’t have to read the directions and decide which number goes in what box.
E-filing asks obvious and straightforward questions, clarifies where to insert details, and fills out the correct forms in the back-end. Electronic signatures do this just though you don’t have to write your name a million times to register.
Simply draw your signature on the trackpad of your computer, copy it, and paste it when you have indicated it. Besides the time you spend manually filing your tax returns in front of your computer, online often means the information is transferred to the back-end quicker.
As soon as you complete your end, the information is immediately sent directly to the IRS. It removes the waiting period for the postal service to deliver the papers, the IRS mailroom to sort them out, and then send them to someone who can accept them.
The most critical thing about tax filing is accuracy. Giving the IRS inaccurate or incorrect details will lead to hefty fines, penalties, and even imprisonment. Filing online ensures that, as long as the information you input is accurate, the forms sent to the IRS will be correct.
In several cases, the e-filing system has a precision guarantee where, whether there are any mistakes, they have the accountability of correcting them and incurring any fees.
Online filing takes away the guesswork from the tax return process because many systems do the calculations for you. You may also obtain a notice from the IRS shortly after e-filing your tax return for mistakes, such as providing the wrong Social Security Number for yourself, your spouse, or dependents.
It’s like dealing with your own personal guide when you’re using online tax software to hold your hand and walk you through, step by step, so you get all the credits and deductions you deserve.
To do your own taxes online, one does not only save you time and money; you will do your taxes easily in the comfort of your home. And, if you’re snowed in, there’s no need to go out and face the storms.
You might also be able to use your mobile to file your taxes on-the-go in minutes. There are a range of tax-helping applications available, such as TurboTax SnapTax for e-filing, or the IRS2Go app, which is an official IRS app that helps you monitor your refund status after you’ve paid.
When you pay your taxes online and use e-file with direct deposit, there’s no easier way to get your tax refund. The IRS estimates that nine out of 10 taxpayers collect refunds within 21 days or less. You don’t even know whether the IRS got the tax return via snail mail.
There are many advantages of filing your e-file taxes online, and it doesn’t have to be daunting. Having all these advantages in mind, you might want to rethink wasting time traveling somewhere to get your taxes ready or mail your taxes over again.
If you miss filing your tax return, you will have to pay interest on the tax due up to the date of filing of the tax return at a rate of 1 percent per month.
For certain serious situations, for the case of willful delays, there are grounds for higher fines and even prosecution. Paying on time, with the option to pay it in mobility, gives you the chance to avoid the fees altogether.
Tax codes are complicated, and many ways exist, and it can be costly to do them incorrectly. That’s why so many prefer to file electronically, as opposed to lugging into an accounting office a binder full of receipts and pay stubs.