Do you still paper file your federal taxes? If so, 2016 may be the year for you to convert to efiling. Did you know that in 2015 close to 129 million Americans electronically filed their returns? One of the main reasons is because it is quicker and easier than paper filing.
Therefore, today we decided to give you six reasons to e-file your 2016 taxes.
- Accurate & easy – When you electronically file your taxes, you are increasing the odds of your tax return being accurate. Tax software’s prevent mistakes since you don’t have to manually do the calculations. It also guides you through the entire tax preparation process. Lastly, it is easier than having to write everything out and then get your return in the mail on time.
- Safe & secure – When you electronically file, all of your information is encrypted. The IRS has processed over 1.5 billion returns that have been e-filed to date. This tax year, they are even working with states and industry leaders to further protect your tax return from making you the victim of identity theft refund fraud. This new endeavor is making tax filing electronically safer than ever before.
- Convenient and It can be free – You can electronically file your federal taxes via IRS Free File on IRS.gov. Additionally, you may also find that you qualify to file your taxes for free via IRS volunteer programs. These programs are available for taxpayers who earn no more than $54,000. Those over the age of 60 can seek help from Tax Counseling for the Elderly. Alternatively, you can purchase commercial tax software to file your taxes yourself or seek the help of a professional tax preparer.
- Faster refunds – Usually, when you electronically file your return you are able to receive your refund quicker. This is because you, usually, will have no errors and you don’t have to wait for it to reach the IRS via the mail system. You can get your refund even quicker when you opt for direct deposit into your bank account. Did you know nine out of ten e-filed returns get their refunds released in less than 21 days?
- Health care tax reporting – When you electronically file your return, you can receive help with the tax provisions of the health care law. By answering a few simple questions, you can fill out all of the forms relating to the Affordable Care Act.
- Payment options – If you have to pay Uncle Sam money, you can file early and set up an automatic payment any time before the April 18th tax filing deadline. You can pay via IRS Direct Pay and have the funds withdrawn electronically from your bank account. Alternatively, you have other options such as debit or credit card.