The days of filing taxes with pencil and paper and trying to grasp the form demands are over. Doing your taxes online with an e-file is not only faster these days but also better than manually filing them.
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.
Faster Processing
Once you file online, the process becomes much faster. You won't have to read the directions and decide which number goes in which box when filling out each form.
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, too, even though you don't have to write your name a million times to register.
Simply draw your signature on your computer's trackpad, 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, filing online often means the information is transferred to the back end quicker.
When you complete your end, the information is immediately sent directly to the IRS. This removes the waiting period for the postal service to deliver the papers to the IRS mailroom to sort them out and then send them to someone who can accept them.
Accuracy
The most critical aspect of tax filing is accuracy. Giving the IRS inaccurate or incorrect details can result in hefty fines, penalties, and even imprisonment. Submitting your forms online guarantees that if the information provided is accurate, the documents sent to the IRS will be error-free.
In several cases, the e-filing system has a precision guarantee. If there are any mistakes, they are accountable for correcting them and incurring any fees.
Online filing removes 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 your dependents.
It's like dealing with your own personal guide when you use online tax software. It holds your hand and walks you through the process step by step so you get all the credits and deductions you deserve.
Mobility
Doing your own taxes online saves you time and money. You can 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. A range of tax-helping applications are available, such as TurboTax SnapTax for e-filing or the IRS2Go app, an official IRS app that helps you monitor your refund status after you've paid.
Also Read: A Brief Guide to the IRS Tax Audit
Faster Refund
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 to filing your taxes electronically, and it doesn't have to be daunting. With all these advantages in mind, you might want to rethink wasting time traveling somewhere to get your taxes ready or mailing your taxes over again.
Avoiding Fees
If you miss filing your tax return, you will have to pay interest on the tax due up to the filing date at a rate of 1 percent per month.
Higher fines and even prosecution are grounds for higher fines and even prosecution in certain serious situations, such as willful delays. Paying on time, with the option to pay it in mobility, allows you to avoid the fees altogether.
Conclusion
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 instead of lugging into an accounting office a binder full of receipts and pay stubs.
