Reasons Why You Should File Your Tax Returns ElectronicallyApril 3, 2023
When the IRS opens the tax filing season, you should file your taxes as soon as possible. You can file paper returns or e-file your tax returns. The paper work method is a bit stressful and may require you to hire a tax expert. You will also be required to mail the tax returns and that can take a few days to reach the IRS desk. As such, you should consider filing your tax returns online. Read on to learn why you should consider e-filing for the coming tax season.
It’s easy and fast
When you file your taxes electronically, it will take less time compared to paper tax returns. When you file your taxes online, you just need to fill in certain forms, import some forms such as W2 and in a few steps you will complete your tax returns and then submit. You need to know that trusted tax prep software will help you determine and calculate the tax credits and deductions you qualify for. The software will deduct child care expenses, earned income tax credit, American opportunity credit and other credits you are entitled to when calculating your tax bill. The software will also deduct tax deductions you qualify for from the taxable income. In short, the software does all the work, you just need to enter the personal information required.
Convenient and flexible
Filing your taxes electronically is very convenient. You don’t have to leave your home or workplace when e-filing your tax returns. You only need strong internet connection and a smartphone or a computer. You can file your taxes using the IRS Free File or use tax prep software such as H&R Block. You can file at any time any day when you file electronically. For paper tax returns you must submit your papers on working days from 9 to 5pm.
Errors are common when filing paper tax returns. You can make mistakes when filing in details or when calculating. The simple errors can spoil everything and you’ll be required to file your taxes again. However, when you consider e-filing, there is increased accuracy where chances of errors are kept to a minimum. You just need to enter the details, and the software will do all the math for you. For instance, the software will deduct child care expenses and energy tax credit from your tax liabilities if you are claiming and qualify for child and dependent care credit and energy tax credit, respectively. The same will happen to all the tax credits and deductions you are entitled to, and you will know your tax bill or tax refund. There is no room for math errors.
You’ll get your tax refund faster
When you e-file your tax returns, there are high chances that your file will be processed fast because it’s mistake-free. You don’t have to send paperwork via mail, and that can take several days for the files to reach the IRS. It also takes close to 8 weeks to process paper tax returns. Generally, paperwork returns will require more time to reach the IRS and to be processed compared to e-filed tax returns. And that means you are likely to receive your tax refund faster.
In today’s digital world, you need to consider filing your tax returns online. As you’ve seen, e-filing comes with many benefits ranging from convenience to getting your tax refund faster. Therefore, come tax season, file your tax returns electronically, and you will enjoy all the above benefits.