Updated: Oct 28, 2022
E-filing is a technique of electronically sending your tax return to the Internal Revenue Service (IRS) over the internet or another direct link. You won't have to bother with paper forms, envelope stuffing, or postage when you submit your taxes electronically. Instead, you send the IRS your sensitive personal financial and tax information electronically.
You can also provide your credit card or bank account numbers online. The IRS uses your bank account information to direct deposit a refund to your account. In addition, the credit card details can be used to pay any outstanding taxes.
Is It Safe To Use Online Tax Filing Services?
Yes, e-filing is a highly secure method of sending your tax returns. Moreover, the odds of your tax information being stolen when you e-file are exceedingly slim.
Because the data in an online tax return is particularly encrypted for added protection, it is much more secure than mailing a tax return via snail mail.
Data is encrypted as it travels between your tax software and the IRS or state tax office, preventing unauthorized access.
Always take care when it comes to safeguarding your personal information. Keep an eye on your credit reports for any unexpected activity and, if necessary, put your credit on hold.
Several Advantages Of Using Online Tax Filing Services
E-filing is about more than just using technology to save a few sheets of paper or a few cents on shipping. It provides numerous other benefits for you and enables a safe and secure online transfer of the data to the IRS and your state's taxing authorities.
Simple And Accurate Calculations
You'll enter your tax information into internet software that handles your arithmetic when you e-file. Tax planning services guide you through the process of filling out your tax return in a simple manner, and you may save your work to finish later if necessary.
Many tax software programs will also ask you a series of questions that will guide you through the various tax credits and deductions available to you. These interviews can help you get the best possible return or, if you owe taxes, reduce the amount you owe.
You, Will, Obtain Quicker Refund
You'll usually get your refund faster than sending it via standard mail. In addition, you can opt to have your cash delivered to one, two, or three bank accounts via automatic deposit to expedite your return.
Your Request Won't Get Misplaced In The Mail.
Your tax return might get lost in the mail, but an e-filed return won't. When you use online tax filing services, you will receive immediate confirmation that it was successfully filed and proof that the IRS has accepted it.
There Won't Be Any Errors.
If you prepare your tax return on paper, you risk making a computation or transferring figures to your incorrect tax forms. Therefore, the ability to e-file must be included in tax software. The program will do all tax computations, including double-checking the figures before filing the return to ensure correctness.
Work On Your Timetable
E-filed returns can be submitted at any time of day or night. So you can do your taxes late at night or early in the morning if you haven't gotten around to doing them until the last minute.
You can also request that your tax preparer e-file your return so that you can submit your information as soon as the process is completed.