Why You Should E-File Your 2010 Taxes

Do you plan to file your 2010 income taxes electronically or still prefer to do it the old fashion way?

I never used E-file, not since when I knew there’s such an option to file my tax returns. The reason for me to avoid e-filing my taxes is very simple: I didn’t have a refund to claim. Since we seem to always own Uncle Sam money, I really wasn’t that eager to let the IRS take the money from us faster. So every year for the past few years, I printed out our tax returns, both the Federal and state, and waited until the tax filing deadline to mail them out. I know this isn’t the most efficient way to file our taxes and waiting in the long line on the tax day, which is April 18th this year, in the post office wasn’t a fun thing at all, there’s just not enough motivation for me to use e-filing. On the other hand, if the government owns me money, then I would start our taxes on the day when I have all the tax documents and e-file our returns right away because I know that all the benefits of e-filing will get us the refund faster. If you expect a refund, there are plenty of reasons to use e-file your taxes, just like there are many benefits of using direct deposit.

Form 1040

Still not convinced? The following are some tips to help you better understand the benefits of e-filing your taxes:

  • It’s easy. You can usually file a state tax return at the same time you electronically file your federal tax return.
  • It’s accurate. No more human errors because e-file checks for math errors and necessary information. This not only increases the accuracy of your return, but it also reduces the need for correspondence with the IRS to clarify errors or omissions.
  • It’s fast. You don’t have to make a trip to the post office. In fact, you won’t even need to walk to the mailbox to send your return. Just click Send.
  • You’ll get your refund faster. When you use e-file, you can get your refund in as little as ten days.
  • No more second-guessing yourself. When you file electronically, the computer software or online program guides you through the process step-by-step.
  • There are more payment options. With e-file, you can file your return early, but wait to pay any balance due by the April deadline. You can also pay electronically using a credit card, electronic funds withdrawal or in some cases the Electronic Federal Tax Payment System.
  • You’ll know the IRS received your return. The IRS will send you an electronic notification acknowledging receipt of your return.
  • You’ll have peace of mind. After clicking send and receiving your notification from the IRS that they received your return…kick back and relax – you’re done!

And when it comes to federal tax returns, e-filing makes even more sense because you may file your 2010 taxes for free. That’s right, if you qualify (especially for taxpayers with simple taxes), you actually don’t have to pay to file your federal tax. Even if you are not eligible for free filing, e-file is usually included in tax preparation software package with no additional cost (see 2010 tax software deals for current promotions).

So are you going to e-file your taxes this year?

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One Response to “Why You Should E-File Your 2010 Taxes”

  1. Option Trading, Trade Options, Trade Stocks |  Feb 10, 2011 at 12:04 am

    This is the most important thing that everybody should remember and do.