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As technology advances, the number of taxpayers choosing to e-file their taxes is increasing. Not only is filing your taxes online convenient in that it saves you time, it also carries potential benefits for your wallet. Additionally, your information is much more secure when you submit it electronically. Following are three advantages to filing your taxes online.
Online tax services are so simple to use that you don’t need to know much about the process to finish filing them quickly. You just have to have personal identification and income information on hand. The best online tax services feature an intuitive guide that leads you through the tax-filing process. A helpful FAQ section is typically available, tips are offered for most questions and some online tax services even offer a chat with professionals. By asking you simple questions about your life, work and business, the software can ensure you receive every credit and deduction you deserve. For example, you will be asked about your charitable contributions, business expenses, dependent care, and more. This guarantees you don’t pay too much in taxes and that you get the right refund. Additionally, online tax services do the math for you, which ensures accuracy.
Our favorite tax service is TurboTax, which walks you through your taxes in an easy, simple process.
Many online tax services link to the IRS’ website. Once you submit the forms, you’ll receive confirmation from the Internal Revenue Service very quickly — usually within 24 hours. They will also send a rejection if there are mistakes, which means you can fix any issues much more quickly. Since the IRS receives the forms faster, they can also review them earlier. Most e-filers receive their refund within three weeks. This is not possible with snail mail, as the time it takes for forms to get to the IRS and be returned is longer.
Many tax software products and online tax services are actually recommended by the IRS, as these are created and managed by tax professionals who have countless years of experience in the industry. Using these services gives you the chance to learn more about tax filing as well. Helpful information is provided throughout the form-filling process not only so that you don’t make mistakes, but also so you clearly understand how it all works. Questions dealing with deductions and credits also show you how you can lower the amount of taxes you pay to the IRS. In the end, all this knowledge will get you thinking in your daily life about what tax credits and deductions are available to you.