Taxpayers who still file paper returns may find now is the best time to switch to e-file. Last year, over 85 percent of taxpayers filed their taxes electronically. E-file is the fastest and safest way to file.
Top Seven Reasons to File Electronically in 2017
1. Accurate and Easy
IRS e-file is the best way to file an accurate tax return. The tax software helps taxpayers avoid mistakes by doing the math for them. It guides users through each section of a tax return. E-file is easier than doing taxes by hand and mailing paper tax forms.
2. Safe and Secure
IRS e-file meets strict security guidelines. It uses modern encryption technology to protect tax returns. The IRS continues to work with states and tax industry leaders to protect tax returns from refund fraud. This new effort has put more safeguards in place to make tax filing safer than ever before. The IRS has processed more than one billion e-filed returns safely and securely.
3. Convenient and Often Free
- Taxpayers can e-file for free through IRS Free File, available only on IRS.gov.
- Taxpayers may also qualify to have their taxes e-filed for free through IRS volunteer programs:
- Volunteer Income Tax Assistance (VITA) offers free tax preparation for those earning $54,000 or less.
- Tax Counseling for the Elderly (TCE) generally helps people who are age 60 or older.
- Taxpayers can buy commercial tax software or ask their tax preparer to e-file their tax return.
- Most paid preparers are required to file their clients’ returns electronically.
4. Faster Refunds
In most cases, e-file prevents mistakes and helps people get their refunds faster. The quickest way to get a refund is to combine e-file with direct deposit into a bank account.
The IRS issues more than nine out of 10 refunds in less than 21 days – however, some returns need further review and take longer.
5. Prior-Year Tax Return
Taxpayers should keep a copy of their tax return. Beginning in 2017, taxpayers using a software product for the first time may need their Adjusted Gross Income (AGI) amount from their prior-year tax return to verify their identity.
Taxpayers can learn more about verifying their identity and electronically signing tax returns at Validating Your Electronically Filed Tax Return.
6. Health Care Coverage Reporting
IRS e-file can help with tax provisions of the health care law. The software will walk users through each line on the tax form that relates to the Affordable Care Act (ACA).
7. Payment Options
If taxpayers owe taxes, they can e-file early and set up an automatic payment on any day until the April 18 deadline.
Payment methods include:
- IRS Direct Pay (electronic payment from a bank account)
- Electronic funds withdrawal
- Payment by debit or credit card
Visit IRS.gov/payments for details.
Frequently Asked Questions
What is IRS e-file and why is it better than paper filing?
IRS e-file is the electronic system for submitting tax returns. It’s faster, more accurate, and more secure than mailing paper forms. It uses built-in checks and encryption technology, helping to avoid errors and protect sensitive data.
Is it free to file taxes electronically?
Yes, many taxpayers qualify to e-file for free through IRS Free File on IRS.gov or via volunteer programs like VITA and TCE. Others may use commercial software or professional preparers, some of which may also offer free e-filing.
How fast will I get my refund with e-file?
Most refunds from e-filed returns are issued in less than 21 days when combined with direct deposit. Errors or further review may delay some refunds, but e-filing generally speeds up the process.
Can I schedule a tax payment in advance through e-file?
Yes, if you owe taxes, you can e-file early and schedule your payment for any date up to the tax deadline. Payment options include Direct Pay, electronic funds withdrawal, and debit or credit card payments.
What information do I need from last year to e-file this year?
You may need your prior-year Adjusted Gross Income (AGI) to verify your identity, especially if you’re using a new software product. Keeping a copy of last year’s return helps streamline this process.