Can filing taxes actually be fun?

Using an authorized IRS e-file provider enables taxpayers to file their income tax returns electronically.  More and more taxpayers are choosing to file their tax returns online using e-file.  Okay, maybe it’s doesn’t actually make taxes fun but 95 million people used e-file to send their tax returns in 2009.  And there are several great reasons for doing so.

Fewer Errors with E-file

The IRS reports twenty percent of income tax returns completed on paper have mistakes, like missing information or incorrectly calculated taxes.  Half of those mistakes cause taxpayers to overpay. But only about one percent of tax returns prepared electronically contain errors.  Online tax preparation sites automatically do the calculations for you and are sure to use the correct tax tables, resulting in substantially fewer mistakes.  Face it, when you’ve been staring at tax forms and calculators for eight hours straight the numbers can get a little skewed.

Plus, the IRS acknowledges receipt of e-filed returns.  This not only gives you proof of filing but if there is a mistake the IRS can detect it and send back an error report in as few as 48 hours.  This allows you to quickly fix the problem and resubmit your return.  Once a paper return has been filed, there’s no way to correct it without filing an amended return.

Not to mention if your handwriting is sloppy or you leave a coffee ring on your return, the IRS may send it back to you for illegibility reasons.  This can’t happen with an online program – unless you spill coffee on your keyboard, but that’s another problem all together.

In most instances you can also file your state tax return using the same online program and it will be e-filed along with your federal return.  If your state isn’t set up for e-file you can use the website to complete your state return, print it and mail it in.  Either way, the system automatically transmits the data needed from your federal return onto your state return and asks you the pertinent questions for your forms.  This makes it virtually impossible to make an error, like switching the order of the numbers.  You don’t want the IRS to see you made $58,040 and have the state think you made $85,040; unless you really like your state and want to fund their budget for the next year through your tax payments.

Quicker Refunds

Using an e-file provider like www.efiletaxreturns.com means your tax return is processed faster.  If you send in your return by mail, you can expect to wait up to six weeks for your refund.  By electing to e-file your return, and having your tax refund deposited directly into your bank account, you can have your refund in as little as eight days.  And who wants to wait an extra month for money that could be sitting in the savings account – or being used to buy a new pair of shoes?

You’re also more likely to get a bigger refund with online tax preparation since the system asks you pertinent questions related to your deductions that help guarantee you don’t miss any.  If you end up owing taxes, the e-file electronic payment options let you schedule a payment for a future date or delay immediate expenses by paying with a credit card.

Ease and Convenience

Consider that the average taxpayer spends upwards of eight hours completing their tax return.  This includes the time for reading instructions, making calculations, looking up tax tables, filling out different schedules and worksheets, etc.  When you e-file online this time is significantly reduced.  The program does the bulk of the work for you.  You generally only need to collect your data, then have it handy when you sit down to work on your return.

Using an online provider also makes it easier to complete your return over time.  This means you don’t have to set aside a large chunk of time to complete your return in fear that if you’re interrupted you’ll confuse the information.  And, of course, Internet programs are available 24 hours per day for your convenience.  How many accountants do you know will come to your house at 2am, sit with you in your pajamas and help you complete your taxes?

The bottom line is online tax returns using e-file are easier to fill out, faster to complete and contain fewer errors than paper returns.  Nothing can make doing taxes fun but e-filing sure beats the other options.