According to the IRS, 20% of income tax returns prepared on paper have mistakes, and mistakes can lead to overpaying taxes. Only about 1% of electronically prepared returns have errors.
The benefits of e-filing include:
• You can electronically file 24 hours a day, 7 days a week.
• Your information remains secure and encrypted to ensure confidentiality.
• E-filed returns have fewer errors than paper returns.
• You can get your tax refund faster.
• You receive proof of filing and a notice when your return has been received and accepted.
The IRS issues acknowledgements online when e-filed returns are received and approved, so you’ll know within 48 hours that your return has been received. If the IRS detects any errors, your return is sent back to you (or your tax preparer) for corrections to be made.
A mailed return can take up to 6 weeks for your tax refund to arrive. Using the e-file process for your return gives you a faster refund and allows you the option to have it directly deposited into your bank account.
If you owe taxes, you can still file electronically. Know that you are required to make payment of tax due by the original April 15th deadline (which is actually April 18th this year). As long as your check is in the mail by the due date, your taxes will be considered “on time.” Other payment options include: the Electronic Federal Tax Payment System (EFTPS), Electronic Funds Withdrawal (EFW) from your bank account, money order, or using a credit card. Note that paying by credit card will cost a little extra because you’ll be charged a “convenience fee.”