Life Support - Tax Facts
Why E-Filing Makes Sense
A Tax Fact from The Tax Institute at H&R Block
E-filing makes good tax sense. For taxpayers who e-file, refunds will be issued in half the time as when filing a paper return, and even faster if you choose direct deposit. Most refunds are issued within 3 weeks for electronic returns, 14 days if you choose direct deposit. A refund check could take as long as 6-8 weeks for filing a paper return and having the refund check mailed.
In 2001, just over 40 million returns were e-filed. That number doubled to almost 80 million e-filed returns in 2007, which represented about 57% of all returns filed. The IRS has estimated that at least 96% of all paper returns are eligible for e-filing. Notably, e-filed returns are 99%+ accurate vs. 81% for paper returns.
Electronic filing, or e-filing, transmits a completed copy of your return to the IRS. H&R Block's office locations e-filed more than 90 percent of the federal returns prepared for its nearly 16 million U.S. clients served last year and the vast majority of the company's 6 million TaxCut® software and online filers chose to e-file as well.
E-filing offers many advantages over traditional, paper return filing.
Signing the return. Verification of your identity is accomplished with either a special signature form or a personal identification number (PIN). Many e-filers who use a PIN do not have to send any paperwork to the IRS. Other filers will have to send the signature form (Form 8453) and other forms, schedules, and statements as required.
What about that refund? When you e-file your return, you can request an IRS check by mail or provide information that will allow your refund to be electronically deposited into as many as three separate accounts.
What about a balance due? You can authorize the IRS to debit your bank or checking account on April 15 for the amount of your balance due. Or, you can e-file your return before April 15 and mail the IRS your payment by April 15. (There are other options available for paying your balance due. Refer to Podcast "Oh No, What If I Owe" for more information.
So, if you would like to save time, worry, and postage stamps, get a faster refund, and perhaps save a few trees along the way, consider e-filing your return next tax season.
This Tax Fact is brought to you by The Tax Institute at H&R Block.
To view other helpful tax information or listen to our Tax Fact podcasts, visit www.digits.hrblock.com
As always...everyone's tax situation is different, so be sure to consult a tax professional or financial advisor before making important financial decisions.
This Tax Fact is for educational purposes only and is not intended to be a substitute for seeking personalized, professional advice, nor is it intended to be used to avoid IRS penalties.
A Tax Fact from The Tax Institute at H&R Block
E-filing makes good tax sense. For taxpayers who e-file, refunds will be issued in half the time as when filing a paper return, and even faster if you choose direct deposit. Most refunds are issued within 3 weeks for electronic returns, 14 days if you choose direct deposit. A refund check could take as long as 6-8 weeks for filing a paper return and having the refund check mailed.
In 2001, just over 40 million returns were e-filed. That number doubled to almost 80 million e-filed returns in 2007, which represented about 57% of all returns filed. The IRS has estimated that at least 96% of all paper returns are eligible for e-filing. Notably, e-filed returns are 99%+ accurate vs. 81% for paper returns.
Electronic filing, or e-filing, transmits a completed copy of your return to the IRS. H&R Block's office locations e-filed more than 90 percent of the federal returns prepared for its nearly 16 million U.S. clients served last year and the vast majority of the company's 6 million TaxCut® software and online filers chose to e-file as well.
E-filing offers many advantages over traditional, paper return filing.
- Time, postage, and paper. You will not need to make extra copies of your return, wait in post office lines, or pay postage. Do make sure, however, that you have a printed copy of the return plus supporting documents for your records.
- Faster refund. On average, tax refunds on e-filed returns are received in less than two weeks. Refunds from paper returns can take as long as eight to twelve weeks.
- Timely filing worries eliminated. You will not have to wonder if the IRS received your return on time, or if it was received at all. Shortly after your return is successfully transmitted, you will receive a confirmation from the IRS that the return was accepted.
- Faster notification of errors. Suppose you file a paper return and accidentally transpose two digits of your child's social security number. The IRS treats the incorrect number as a math error. They will "correct" the error by removing your child, and any related deduction or credit, from the return. Your refund or balance due will be adjusted accordingly. It may take weeks, or even months, to find out about the problem. Once you learn of the problem, you will need to file an amended return to show the correct SSN. If your refund was reduced, you have to wait even longer to receive that part of your refund.
If you e-file your return with the same mistake, the return is rejected by the IRS because of the mismatch of the name and SSN. Sounds terrible, but within 24 - 48 hours, you receive an electronic notice explaining the problem. You can then resubmit the return with the corrected number. The delay is only a few days at most.
Signing the return. Verification of your identity is accomplished with either a special signature form or a personal identification number (PIN). Many e-filers who use a PIN do not have to send any paperwork to the IRS. Other filers will have to send the signature form (Form 8453) and other forms, schedules, and statements as required.
What about that refund? When you e-file your return, you can request an IRS check by mail or provide information that will allow your refund to be electronically deposited into as many as three separate accounts.
What about a balance due? You can authorize the IRS to debit your bank or checking account on April 15 for the amount of your balance due. Or, you can e-file your return before April 15 and mail the IRS your payment by April 15. (There are other options available for paying your balance due. Refer to Podcast "Oh No, What If I Owe" for more information.
So, if you would like to save time, worry, and postage stamps, get a faster refund, and perhaps save a few trees along the way, consider e-filing your return next tax season.
This Tax Fact is brought to you by The Tax Institute at H&R Block.
To view other helpful tax information or listen to our Tax Fact podcasts, visit www.digits.hrblock.com
As always...everyone's tax situation is different, so be sure to consult a tax professional or financial advisor before making important financial decisions.
This Tax Fact is for educational purposes only and is not intended to be a substitute for seeking personalized, professional advice, nor is it intended to be used to avoid IRS penalties.
