Most taxpayers tend to fall into two camps. The first is those who file early and use efiling to take advantage of the speedy return of their refund. The second camp are those who wait until the last minute to file their return and use efiling to make sure that they meet the filing deadline set by the IRS. However, efiling provides several additional benefits that make it an attractive option for most taxpayers. Working with your tax professional or accountant, such as MVW Services in Artesia, CA, you can determine if efiling is appropriate for your particular return. Here are just a few of the benefits that most have found by using efiling.
Control of the Delivery of Your Return
While you can choose to complete a paper tax return and mail it, the return’s delivery time will be determined by the speed of the postal system. Therefore, you might find that your return arrives with a large batch and this delays its processing. Additionally, paper returns are often subject to additional scrutiny by the IRS. On the other hand, when your tax return is efiled, it is delivered almost immediately to the IRS. They have software that processes it and determines if there are any errors that might result in additional review.
If not, then the return will result in your refund being processed and available within a relatively short window of time. The refund can also be directly deposited into your bank account, so there is little delay in the availability of the funds. However, with a paper return, you will have to wait until the processing is complete and then your refund will be either deposited into your bank account or made available via a check that is mailed to you. As you can see, there is the potential for considerable delay before you receive your refund with a paper return.
Variety of Ways to Efile
In addition to the processing speed and return of your refund, you also have multiple ways to efile your return. One such way is to hire a tax professional or tax preparer, who can handle the completion of your return and the filing process as well. Depending on the tax professional, you may have to complete a paper return that they will then transfer into electronic format for filing. Others take your raw data and using tax preparation software, are able to complete your return electronically and then submit it.
The IRS website can also direct you to several efiling options if you choose not to use a traditional tax preparer. These are typically tax software options that give you the ability to file your return yourself and can be free if you meet certain criteria. However, even if they are not free, most of the costs are fairly reasonable and may package the electronic filing of your state return as well.
This option can also save you the cost of purchasing a tax filing software and the necessary updates on an annual basis, as most of these websites provide the same capabilities as traditional software without the larger cost. This method can assist you in avoiding the problems or potential glitches that occur when you are working through the installation process of a new program on your computer. For the most part, you should be able to complete your return in one visit by having all your information available prior to starting your return.
If your adjusted gross income is less than $62,000, then you can also take advantage of the tax prep software and efile for no charge. However, the IRS does offer the forms necessary for filing your taxes online and give you the option of completing them and then filing them electronically on your own.
With efiling, you can also take advantage of the ability to electronically transfer your payments to the IRS, or to receive your refund. Additionally, the payment methods available for making your tax payment include credit card payments to direct ACH funds transfers to the IRS. However, keep in mind that there may a small fee for the use of these methods that must be calculated as part of your overall payment.
As you can see, efiling has multiple benefits in terms of what it offers to taxpayers with regards to accuracy and speed of processing. The IRS will continue to encourage taxpayers to take advantage of this filing method into the future.
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