Filing Your Taxes Electronically
What is the Best Way to File Your Taxes?
It is tax time again and the deadline to complete your income taxes of April 15th is just around the corner. One decision that must be made is whether to file a paper or electronic tax return. There are advantages and disadvantages to both approaches when filing your taxes.
The process of filing an electronic return is different than a traditional paper return. It consists of a software program asking the user questions about any major life events, such as, marriage, divorce, or any new dependents. The program will also ask the user questions about their income in that year. Filing your taxes can be fairly simplified when you file electronically. The software guides you through the process and sometimes picks up on specific things that people tend to miss.
Another advantage of electronic filling is that a refund could be issued much faster than a traditional paper return. Refunds are issued using electronic deposit into your checking account. It typically takes just a few weeks. When filing your taxes the old-fashioned way, you will have to wait longer for your return. The paper return is a longer process, and it could take months until your refund arrives.
Watch Where You File
Also, make sure that you use an authorized electronic filing website when filing your taxes electronically. These websites are listed on the official IRS website. You have the option of filing both your local and state taxes electronically. You will usually have to file your local taxes via paper. Any time you have a particularly complicated tax situation you will want to contact a qualified professional such as a tax accountant.
Many consumers I know have only filed their income taxes electronically once they tried this method. Most consumers either like this method or hate it, so take into account your own personal tax situation before making a decision about whether filing your taxes electronically is right for you.