When To Use IRS E-file?
Saving Time and Paper with E-Filing
In recent years, e-filing has become increasingly popular as a method of filing taxes, and for a good reason. E-filing offers a variety of benefits, including time-saving, paper-free, and increased accuracy. E-filing refers to the electronic transmission of tax returns to the Internal Revenue Service (IRS). This article discusses e-filing as a means of saving time and paper, why people should consider e-filing and how it can help the environment.
The Need for E-filing
Filing taxes can be a daunting task for many. It is a task that required manual filing to be done in the past. However, manual filing can be challenging due to its language usage, keying errors, and the length of the process. Before e-filing, taxpayers were required to fill out all their tax information manually on paper forms, then mail them to the IRS, which meant waiting weeks for a refund or an acceptance notice.
In the early 1990s, e-filing was introduced as a means of providing taxpayers with a more convenient and efficient way of filing taxes. With e-filing, taxpayers can complete the process online, which takes less time than manual filing, and eliminates the need for hand-filled forms or paper.
Why E-filing is a Better Option
E-filing offers several advantages over traditional filing methods. Some of these benefits include:
1. Faster Processing Time
When you file your tax returns electronically, the process is automated, and the IRS can process it quickly. Typically, you can expect to receive your refund in as little as one to two weeks.
2. Increased Accuracy
With e-filing, your tax information is processed electronically, which minimizes mistakes due to incorrect or unreadable information. In contrast, traditional filing methods often result in incorrect tax information or lost paperwork.
3. Time-Saving
E-filing saves time for both the taxpayer and the IRS. The taxpayer doesn’t have to mail in forms or wait for them to be processed, and the IRS doesn’t have to enter tax information manually. Electronic filing systems can also check the forms against existing data to identify errors or missing information and flagged the errors in real-time.
4. More Secure
E-filing is more secure than traditional filing methods as the data is encrypted and secure. In contrast, paper filings can be vulnerable to theft or damage in transit.
Environmental Benefits of E-filing
While there are many benefits to e-filing, it’s important not to forget about the environmental benefits. With e-filing, you eliminate the need for paper tax forms and mail-in envelopes. This means fewer trees cut down, less fuel used to transport envelopes, and lower emissions from transportation vehicles.
According to the IRS, e-filing saved over 242,000 trees in the year 2017 alone. In addition, taxpayers who e-filed their returns from their homes were able to reduce their carbon footprint, saving an average of 16 pounds of paper and reducing greenhouse gas emissions by almost 4 pounds. These are statistics that highlight the importance of e-filing.
The Risks Involved in E-Filing
While e-filing offers many benefits, there are some risks associated with the process. For example, if someone hacks into your computer or online account, they could potentially access your financial data and steal your identity. If you decide to e-file your tax returns, follow these tips to keep your information safe:
1. Use Strong Passwords
Your online account should be password-protected, and you should use a strong, complex password that is difficult to guess.
2. Secure Your Computer
Make sure your computer has a good antivirus program and firewall installed and updated regularly.
3. Protect Your Personal Information
Be careful when sharing your personal information with others. Don’t send social security numbers or other sensitive information over email or social media.
4. Use a Secure Network
If you plan to file your taxes from a public computer or Wi-Fi hotspot, make sure the network is secure to avoid any security breach.
The Future of E-Filing
According to the IRS, e-filing has grown at an unprecedented pace over the last decade. More taxpayers are using e-filing every year to submit their returns, as it’s much quicker, less prone to mistakes, and more secure. The IRS recently reported that 92.3 million taxpayers used e-filing in 2021, up from 75.2 million in 2017. That represents a staggering 22 percent year-on-year growth rate.
The Future of e-filing looks promising. The IRS continues to work to simplify e-filing and make the process more user-friendly. This includes expanding the e-filing program to include more forms, including all state tax returns.
Conclusion
E-filing offers significant advantages over traditional filing methods. It’s faster processing time, increased accuracy, saves time and is more secure for taxpayers. It’s also better for the environment as it eliminates paper tax forms and mail-in envelopes. However, there are some risks involved with e-filing, which taxpayers should consider. By following the tips mentioned above, taxpayers can stay safe online.
E-filing is when an individual electronically submits their taxes to the government through the use of computer software and the internet. After a person completes their taxes they can be easily submitted for review and a refund.
To submit taxes using the IRS e-file, one may consider visiting their site. The IRS has created a program known as “free file” which allows for individuals to prepare and e-file their taxes online for free.
The program is eligible for taxpayers with a gross income of $57,000 or less, thanks to the Free File Alliance LLC, a private sector tax preparation software companies.
The IRS e-file program allows individuals to search for a company that will fit their needs as well as answer questions, help with math, check for accuracy and errors, and of course e-file. Tax returns may also be easily accessible and more prompt due to the IRS e-file system.
When choosing to make use of the e-file, tax returns can be sent back to the taxpayer at a quicker rate because the information entered in the tax return and then e-filed goes directly to the IRS computer. This information is then saved, reviewed, and approved.
The IRS e-file option is not only more efficient and timely, but also leaves less room for mistakes and complications.
If an individual’s gross income does exceed the eligible amount, IRS e-filing is still an option when a tax preparation software is either purchased or downloaded online.
