Filing Your Taxes Online Via E-file

Originally posted on the Tree.com Money and Finance Channel

Technology makes everything easier, including the annual pain of filing your taxes. There still will be people who will rush to get that return postmarked by midnight by the tax deadline (April 18th this year, by the way), and there still will be lines of people at the post office dropping their returns in the late night drop boxes. You can save a lot of time and hassle by filing your return online via IRS e-file.

The IRS website is quite comprehensive and helpful with information on your taxes. You can find all the information and forms you need there, quickly and easily, including all the information on filing online directly with the IRS.

Two out of three taxpayers now use the IRS e-file system. Under the freefile option, you have a couple of choices, depending on your income. If your income is under $58,000 you can use Free File, where 20 tax software companies make their products available for free via the IRS website.

Regardless of income, anyone can use IRS online fillable forms, the electronic versions of the traditional IRS paper forms.

You can also do your taxes yourself using e-file with commercial tax software. With this option, you purchase tax prep software, prepare your own return, and submit simply by pressing “Send.” The IRS recommends that you shop around, as prices vary.

You can also work with a tax professional to help prepare and e-file your return. Most tax professionals are already using e-file, as are all the major commercial tax preparation firms. You’ll get your return faster, and have more options if you owe. The IRS has a list of authorized e-file providers for individuals.

Tax professionals accepted into the e-file program are called “Authorized IRS e-file providers.” Your tax professional will work with you to prepare your return, and file your return electronically with the IRS. Your return and related information are sent via secure channels, not via email. Before submitting your return, you’ll sign it via a PIN, or by signing the U.S. Individual Income Tax Transmittal for an IRS e-file Return (Form 8453).

Once the IRS receives your electronically submitted return, it is checked by computer for errors or missing information. If your return cannot be processed, it is sent back to the authorized sender for clarification or missing information. Once clarification is provided, your tax pro will resubmit your return. When your return is complete and accepted, the IRS sends acknowledgement to the submitter stating that the return has been accepted for processing. This is your proof that you have filed your return.

If you are due a refund, you can expect to see it usually within 3 weeks of the filing date, faster if you choose a Direct Deposit option. If you owe additional taxes, it’s your responsibility to send the payment by the tax deadline (usually April 15th, but April 18th for 2011). Payments can be made 24 hours a day, 7 days a week. There are electronic payment options, you can authorize an electronic funds withdrawal, or use a credit card to make your payment.

The IRS does not charge a fee to e-file, but your tax professional might. Some tax professionals will e-file a return you’ve prepared yourself for a fee, and others offer e-file submission as part of their tax preparation services.

Most tax professionals now offer e-file. You can visit the IRS website and search by zip code to find authorized e-file providers near you. You can also find authorized e-file providers online, or in your phone book.

E-file helps make your tax filing a little less painless, and more efficient. If you have a refund coming your way, you’ll often get it faster than if you filed via traditional methods. If you owe, there are also a number of options available to you. If you have any questions, visit the IRS website, or talk to a local tax professional.