How Online Income Tax Filing Beats Snail Mail – Hands Down
In the US today, online income tax filing has risen dramatically in its popularity as more and more people are discovering the advantages of this type of tax filing over traditional snail mail returns. Of course, it makes sense: an online tax return completed over encrypted channels with the best security available to the IRS would really have to be more secure than a mailed income tax return.
When the online filing system was initially trialed in Phoenix, Raleigh-Durham and Cincinnati in 1986, it did little to inspire users. Then in 1990, the online system was launched nationwide; growing in popularity, as the online medium likewise has since those early internet days. Today the advantages of online tax filing have seen this become the most popular way to complete your tax; offering numerous benefits beyond simply reducing the amount of paper used.
So how do you prefer to file your taxes? Do you know the benefits of the online system that everyone is switching to? For most people the biggest advantage of online filing is the speed and convenience. Filing taxes online places the refunds directly in your bank account, no more waiting for a check in the mail. What’s more – online filing can see that refund deposited in just ten days! Yes, you can stop rubbing your eyes – you read it right – just ten days! In fact, you’ll get an acknowledgement that you filed within just two days to verify you have completed your tax filing. Never again will you face the dilemma of claims that no one received the paperwork; with online tax filing you can be sure that your tax return goes through right away and is processed faster than you could ever have imagined!
When you think about it, it makes sense really. Let’s face it – how could your return possibly be safer while being carried around in a mail bag and stuck in your letter box where anyone could simply take it if they really wanted. Looking at things like that makes it clear that the high security encryption used by the US government has got to be a safer bet! If you want to persist with the snail mail path so be it, but it’s understandable why a massive number of users are opting to submit their tax returns securely and receive an acknowledgment of receipt right on time, instead of running the risk of getting it in late.
Clearly, the majority are coming around to this way of thinking. Nearly 65% of returns today are filed online. More than 80 million users had already taken this option before 2008. So what has prompted the change? Why have such a significant number of people switched to online income tax filing? Well one good reason for the switch is that you can rest assured your return will go in on time. Another is that you no longer have to worry that your return will get lost in the post and not arrive at the destination. The reality is that these things do go astray, but how can you prove it? Then there is the added security of filing taxes online that was mentioned earlier. In fact it’s not much different than if you shop online, you would give the same details then, so why not do so to speed up your tax?
The system used by the IRS for online income tax is the e-File system. This particular tax filing system is much more accurate and user friendly than many other systems. The studies have revealed just 1% of errors from this system, in contrast to some 20% in error rate with the offline tax input system. Now I’m not a gambler, but I don’t like those odds! Whichever way you look at it a 1% error rate wins hands down! Even blaming some of it on snail mail, the reality is that the online tax form must be more user friendly and offer better support. Not only is your tax reviewed online for completeness, it is also assessed for accuracy when using the e-File system. No matter what the underlying cause for the error rates, with 20 times more chance of your tax being filed incorrectly it’s amazing that anyone would continue to bother with the old snail mail system!
As well as saving paper and protecting trees and the environment, filing your tax online is much more convenient. Filing taxes online means a significantly reduced chance that it will get lost in the system, with the snail mail going missing twenty times more often than online delivery! Everyone wants their return done with the minimum of fuss and that is exactly what online filing offers. Not only can you be certain that the return is filed on time, you can also be sure that it is processed quickly when it arrives.
One of the concerns that has been expressed by those hesitant about trying this new system is that they’re not sure of what the costs are involved. However, if you earn less than $54,000 you can take advantage of the system created by the IRS in conjunction with the Free File Alliance LLC. This has seen the development of a free electronic tax filing system, available for taxpayers in the aforementioned tax bracket. The system is known as Free File and it offers the user all the same security and other features of the normal online service, but without the cost of filing that those earning at a higher level must pay.
To take advantage of Free File simply go to the IRS website and sign up for the service via the list of companies that can help you with this online filing. This service is an exceptional opportunity for low income earners to take advantage of the features of the Free Service.
A particularly useful option for the low-income earner is that any taxes that you owe can be registered when you file online and paid at a later date. Many of the other features are as they were in the old tax lodgment system; with the option to file state and federal tax returns at the same time still intact. The only difference is that you will save yourself time by doing the tax online.
One of the most crucial aspects is how you prepare your income tax and lodge it via e-File, as you are required to send more than one file. Make sure that you review the file and eliminate errors and then double check that you have completed each and every schedule. One of the easiest things with the online system is carrying out the error checks is easier and more efficient than the offline tax input system. This is likely one of the reason that there is a low 1% error rate with online filing compared to 20% error rate with the offline system.
The overall simplicity of the online tax system makes it an obvious choice over the more difficult and involved offline tax filing system. Ultimately, the increasing popularity of online income tax filing is a reflection of the fact it is simpler, faster and provides higher security than the traditional offline system.
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