It seems everyone is talking of filing taxes online these and Why Not? Online option of filing taxes provides ease and convenience to hundreds and thousands of tax payers. As the popularity of online tax return options grows, so does the need to learn how to file these taxes online. Many people are aware that there is an option available to them through which they can file their tax returns online but they are still not aware how to do it. Still every year the number of online tax return submissions is growing rapidly both at Federal and State levels.
Before people decide whether to file their tax returns online they want to be made aware of positives and negatives of the process. Surely, this way is much more convenient but nothing becomes without its short comings. We should learn and be aware of exactly what things should be avoided while making use of the online option so that we void any mistakes.
Let us begin on a positive note and highlight pros of filing your tax online electronically:
a. While filing online the returns are submitted almost instantly and reaching IRS authorities. One can easily avoid hassle of preparing lot of paperwork and then using postal service to deliver your packet to the concerned authorities on time. The flow of information is faster and with much more easier compared to the traditional method.
b. The Tax refunds are received at much faster pace. Sometimes within 8 days of filing your return you can receive your tax refunds.
c. This method is much cheaper than the manual method.
d. The online filing system also has inbuilt check and correction methods which would mathematically check your submissions and make you aware of mistakes if there are any.
Listed below are some of the negatives of online filing of tax returns:
a. There may be a fee attached to preparation and filing of returns online. There are many software programs available for free which will help you with your Federal Tax returns but while filing your State returns online you will have to buy some of the software solution. The cost of such software would be in the range of $ 35 to $ 40.
b. Secondly, not all the people are proficient in handling and navigating computer software. For those who are not that computer savvy it becomes difficult to handle various files and folders and may need assistance or training in doing so. They may also make some silly mistakes due to their ignorance to handle the system.