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Tax day

What Does it Mean to EFile?

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E-file is shorthand for the electronic filing of income taxes. Tax forms are filled out on-line and submitted through the Internet. The process is faster, returns are sent more quickly, and it helps meet federal guidelines for paperwork reduction. Because of security measures built into the system, e-filing is more accurate, safer, and more secure than performing the task by hand and mailing it in.

Who can e-file

E-filing is available for anyone filing taxes. There are no restrictions regarding income level, itemization of deductions, or other factors. For those whose adjusted gross income falls below a certain level, e-filing is free. The only requirement is that the filer have access to the Internet.

How to e-file

For those interested in using e-filing services, there are several options available. Tax preparation software is available from a number of reputable companies. These software programs are easy to use, will guide you through the process, and then submit the completed forms once they are completed. There may be a fee charged to e-file (this in addition to the price of the software), but because the market is so competitive, it is very easy to find a program that includes this fee in its price.

Another options is to visit www.irs.gov and select one of the companies they have authorized to work with taxpayers. With these companies, a fee is charged only if adjusted gross income is above a particular threshold.

Whichever method is selected matters little in the final results. All licensed e-file software asks questions to find the as many deductions as are allowable to find the greatest amount of a return, or to lower tax payments as far as is legally permitted. E-filing does require direct deposit, which is much faster – on average, refunds are issued in two weeks (or less).

Security measures

Because returns are submitted through secure sites, every precaution has been taken to keep sensitive data safe. In addition, there are no worries about a tax return being lost or stolen. When a return is filed, the taxpayer is notified immediately that the return has been received. The taxpayer can also track the status of the return, and receive updates as to when to expect a refund.

When tax season rolls around, using an e-file tax service or software is a sensible consideration. Fast, easy, safe, and inexpensive : e-filing does not tax your patience.

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