Most of us by now have heard a lot about the IRS e-file system for filing taxes online or those returns done by tax preparers. From what we have seen so far, this is by the most accurate method for filing taxes, plus it can be said to be user friendly. Recent studies have shown us that the e-file method error rate is slightly below 1%. When you compare that to the 20% error rate in paper returns, it most surely is impressive.
If I were a gambler, and had those odds stacked against me, I wouldn't bet against a sure thing. I can answer the question now without going much further. Is Online tax filing in your future? Yes it definitely is. Even if you place most of the blame for the high error rate on snail mail, the facts speak for themselves. The online tax form is obviously more user friendly and guaranteed to be free of mathematical errors.
When a tax return is e-filed, it begins with a check on the name(s) and social security number(s)of the filers and also the dependents claimed. It will also check to see that no one else has claimed the same dependents. The return is then reviewed to be sure it is complete and accurate.
It doesn't matter much what the cause(s) are for the 20% error rate on paper returns, I don't understand why anyone would want to chance those odds, but there still are a few. At least for now.
Preparing and filing an online tax return makes more sense for environmental reasons, as paper is saved and less trees are cut down. Besides, filing taxes online is much more convenient any way you look at it.
Another good reason to file your taxes online is that unlike snail mail, your return won't get lost or misplaced. Your return flies through the system, is reviewed and checked, untouched by human hands, with no problem. This is what filing online offers us. You also have the assurance that your return, when filed on time, is processed very quickly, and is generally accepted by the IRS in 24 hours, and often in a few hours depending on the drain schedule.
There are other taxpayers that express concerns on the cost for e-filing and this makes them hesitant to do so. This is certainly understandable, especially with the current inflation and economic uncertainties.
When the system first started a few years ago, many of the online firms, and even some tax practitioners in the local offices, slipped in charges and fees to e-file a tax return. With the heavy competition, however, that has changed significantly, and it's rare to see a charge for this.
If your adjusted gross income (AGI) is $58,000.00 or less, you will qualify to file your Federal tax return for free on the IRS website. You will need to prepare and file your state return however, and it may cost you extra to do so.
This service offered by the IRS is part of the Free File Alliance and is aimed at the lower income taxpayers. Practically all of the online tax filing vendors, including our firm, has a very similar offer. If your tax return qualifies as a 1040EZ return, there is no charge for the federal return and on our site, a low fee to file the state return, with no charge for any e- filing. With any of the free filings, or for that matter, any online tax filing, if you owe any money to the IRS or state, you can still file the returns early and then pay the balance due by April 15th with a voucher and check or at one of the IRS approved agents by a debit to your account.
If you are filing taxes with one of the online vendors, error checking is normally done when you finish entering the information. With our tax filing software program, you need only to answer a few basic interview questions, and the program will have all of the forms ready to enter your information, automatically.
Once that is done and you calculate the return, the program makes sure that you get every deduction and tax credit that you are entitled to, based on your age, filing status, and gross income. During this process, the return is checked for any errors, and then it is placed on the screen for you to review.
This is the primary method used to get the error rate down so low, and it is very effective. Any errors that might be found at this stage are easier to correct than after the return is e-filed.
So once again, the question, is online tax filing in your future? is asked, and the answer is a resounding YES. The IRS knows how cost effective electronic filing of tax returns is for them, and you can be sure that they will promote this and will probably require it for all taxpayers very soon. For the tax year 2012, any one who files more than 11 tax returns is required to e-file their returns. It is simpler, faster, more accurate, and cheaper by far.
If I were a gambler, and had those odds stacked against me, I wouldn't bet against a sure thing. I can answer the question now without going much further. Is Online tax filing in your future? Yes it definitely is. Even if you place most of the blame for the high error rate on snail mail, the facts speak for themselves. The online tax form is obviously more user friendly and guaranteed to be free of mathematical errors.
When a tax return is e-filed, it begins with a check on the name(s) and social security number(s)of the filers and also the dependents claimed. It will also check to see that no one else has claimed the same dependents. The return is then reviewed to be sure it is complete and accurate.
It doesn't matter much what the cause(s) are for the 20% error rate on paper returns, I don't understand why anyone would want to chance those odds, but there still are a few. At least for now.
Preparing and filing an online tax return makes more sense for environmental reasons, as paper is saved and less trees are cut down. Besides, filing taxes online is much more convenient any way you look at it.
Another good reason to file your taxes online is that unlike snail mail, your return won't get lost or misplaced. Your return flies through the system, is reviewed and checked, untouched by human hands, with no problem. This is what filing online offers us. You also have the assurance that your return, when filed on time, is processed very quickly, and is generally accepted by the IRS in 24 hours, and often in a few hours depending on the drain schedule.
There are other taxpayers that express concerns on the cost for e-filing and this makes them hesitant to do so. This is certainly understandable, especially with the current inflation and economic uncertainties.
When the system first started a few years ago, many of the online firms, and even some tax practitioners in the local offices, slipped in charges and fees to e-file a tax return. With the heavy competition, however, that has changed significantly, and it's rare to see a charge for this.
If your adjusted gross income (AGI) is $58,000.00 or less, you will qualify to file your Federal tax return for free on the IRS website. You will need to prepare and file your state return however, and it may cost you extra to do so.
This service offered by the IRS is part of the Free File Alliance and is aimed at the lower income taxpayers. Practically all of the online tax filing vendors, including our firm, has a very similar offer. If your tax return qualifies as a 1040EZ return, there is no charge for the federal return and on our site, a low fee to file the state return, with no charge for any e- filing. With any of the free filings, or for that matter, any online tax filing, if you owe any money to the IRS or state, you can still file the returns early and then pay the balance due by April 15th with a voucher and check or at one of the IRS approved agents by a debit to your account.
If you are filing taxes with one of the online vendors, error checking is normally done when you finish entering the information. With our tax filing software program, you need only to answer a few basic interview questions, and the program will have all of the forms ready to enter your information, automatically.
Once that is done and you calculate the return, the program makes sure that you get every deduction and tax credit that you are entitled to, based on your age, filing status, and gross income. During this process, the return is checked for any errors, and then it is placed on the screen for you to review.
This is the primary method used to get the error rate down so low, and it is very effective. Any errors that might be found at this stage are easier to correct than after the return is e-filed.
So once again, the question, is online tax filing in your future? is asked, and the answer is a resounding YES. The IRS knows how cost effective electronic filing of tax returns is for them, and you can be sure that they will promote this and will probably require it for all taxpayers very soon. For the tax year 2012, any one who files more than 11 tax returns is required to e-file their returns. It is simpler, faster, more accurate, and cheaper by far.
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