subject: Should I E-file My Income Tax Return [print this page] Every year tax season brings questions to familiar questions to accountants and one of the most popular is; what is e-filing and is it something I should be doing? If that sounds like you than youve come to the right place because were going to answer your e-file questions starting with what does e-file mean. E-file means, Electronic Filing which is where your tax return is sent directly to the IRS by the internet where it is processed and since 1990 joins about 1 billion other e-filed returns.
Is E-File The Right Choice For Me?
E-file is the safest fastest way to get your taxes to the IRS. That speed means that if you are expecting a tax refund than you will get it a lot faster then mailing in your return. How much Faster? Most e-filers who are expecting a refund and who opt for direct deposit get that refund in between 10 days and two weeks. People who paper file must wait 6 weeks or more for their refund. Since e-filed returns go directly from computer to computer the chance of a lost return is zero!
How Does The IRS Get My Tax Return?
By using approved tax preparation software your tax professional transmits your completed return directly from their computer to the IRS computers across the internet. As an authorized Electronic Return Organizer your tax professional has been pre-approved to have his or her computer communicate directly with the IRS computers to get your tax return processed quickly and correctly.
What About My Signature?
The most popular way of signing an e-filed return is not with a pen but with a PIN, personal Identification Number. Most of the time your tax professionals tax software can create one for you and automatically add it to your return, you will still have to sign an e-file authorization giving your accountant permission to e-file your return.
How Will I Know My Return Got There?
Since e-filed returns dont get handled by humans and go from computer to computer many people are concerned that their return will be lost in cyber-space. There is no need to worry when a return is e-filed your tax professional will receive a confirmation notice that your return is free of errors and accepted within 24 -48 hours. If there are mistakes on the return the IRS will let your preparer know what the errors are so they can be fixed and resubmitted without having to wait weeks for the mail. Accepted or rejected for errors, every return is accounted for.
How Do I Pay If I Owe?
Every year millions of people have a tax liability due for a variety of reasons such as not having enough withheld from their paycheck. For those who owe taxes, the first thing to know is that you do not have to make that payment until the filing deadline regardless of whether you file your return early. That means if you e-file your return in January and you owe $500. you do not have to make that payment until April 15th.
The way you pay your tax due is also up to you. You can choose to go paperless by making a payment online by credit card through the IRS website or you can elect to have the amount owed deducted directly from your bank account by Electronic Funds Transfer, EFT. For those who prefer to use a paper check you still can by including a Form 1040-V along with your check and mailing it to the IRS by the filing deadline.
How About My State Return?
37 States and the District of Columbia (Washington DC) accept e-filed returns, check with your tax preparer or your states Department of the Treasury.
Does It Cost More To E-File?
The IRS and states that accepts e-filed returns do not charge a fee to e-file. However not all tax professionals are the same so be sure to ask before any work is done so you can understand any charges that will occur. If your tax professional does charge a fee to e-file your federal return they may not base that fee on any figure in your return. Tax software purchased online or through a retail store will vary from product to product and may not charge for federal but charge for state and local.
