Most taxpayers-- over 80 percent-- file their taxes electronically, according to the Internal Revenue Service. Since electronic filing was introduced in 1990, the IRS has processed over one billion individual tax returns. Considering the increasing number of online identity theft cases, some taxpayers might be a little hesitant about going with this option. Here's why you should e-file:
Unlike paper, sophisticated filing software provides guidelines and instant feedback on your tax return. An incomplete tax return or one containing errors will take longer to process, which is an added risk for paper filing.
Because of the widespread anxiety over digital identity theft, the IRS only authorizes tax preparers and software companies that meet their high standards for security and efficiency to e-file. Before committing to a certain company, make sure to check if it's included on the IRS authorized list.
Whether you're paying or being paid, everyone wants to be done with taxes as quickly as possible. E-filed tax returns typically have faster refunds than paper returns. According to the IRS, most refunds are issued within 21 days after the return is processed. Paper returns tend to take longer to process so IRS advises to check the status of your refund 6 weeks after mailing. If you want your return to come extra speedily, choose direct deposit when you designate payment preferences too.
Filing a tax return online is presented as an "easy" way to do your taxes. In reality, there are some valid concerns that should come along with filing such an important document without a tax professional. Our trained experts at H&R Block are well-equipped and readily-available for advice, recommendations, and even just assurances for anyone who might not be fully comfortable with this high-tech process.