As tax season rolls around each year most Americans dread the tax preparation and assistance process. Advancements in technology have allowed people to file and submit their taxes with the IRS in two different ways: by e-file or mailing it on paper. According to the IRS, 90% of Americans e-filed their taxes in 2019. Only those rare, few mathematically minded folks who love order, penmanship, and paperwork that actually love sitting down to fill out their tax returns on paper.
In fact, the Internal Revenue Service encourages you to electronically file. The IRS claims that 20 percent of hand-written tax returns contain mistakes, compared to 1 percent of e-filed returns. For those who are still on the fence about joining the millions of Americans who choose to do their taxes themselves and e-file their tax returns, here are some of the advantages:
Confirmation From the IRS
One of the biggest benefits for electronically filing is that you will receive confirmation that your tax return has been received by the IRS. This confirmation is proof that the IRS has received your tax return and is beginning to process it. Whew!
If, for some reason, there is a mistake or the IRS will not accept your tax return, you will be immediately notified with a rejection notice usually within 24 hours of transmitting your return. Along with being super quick, it will send feedback on why or how to make your tax return acceptable for the IRS.
Accuracy
Part of the reason tax season is so stressful for Americans is because they feel like they could be making mistakes. E-filing reduces the risk of errors significantly. Manually filling out tax paperwork can increase the chance of errors. Having an error or miscalculation on your tax return an increase the wait time for your refund or cause an audit of your paperwork. E-filing walks you through the process, ensures you are not missing any deductions you may apply for, and does the calculations for you.
Faster Refund
There’s no faster way to receive your tax refund if you file your taxes online and use e-file with direct deposit. The IRS reports nine of 10 taxpayers will receive their refunds within 21 days or less. With the use of mail, you wouldn’t even know if the IRS has received your return in that amount of time.
File from anywhere
Doing your own taxes online will not only save you time and money, but you can conveniently do your taxes from the comfort of your own home. You may even be able to file your taxes on-the-go in minutes using your smartphone. There are a number of apps available to help with taxes, such as TurboTax SnapTax for e-filing, or the IRS2Go app, an official app from the IRS that allows you to track the status of your refund after you’ve filed.
It’s easy
You don’t have to be afraid to deal with your taxes since good tax software is very user-friendly and intuitive. In fact, you don’t need to know anything about the tax code. Tax software will ask simple questions about your life and provide the tax deductions and credits you’re eligible to receive. Tax software can also eliminate extra work because if you used the same tax software before, it can transfer relevant information from previous returns.
We have highlighted some of the easy and even free e-filing tax websites below:
Why Have Limitless Investment & Capital Prepare Your Taxes?
– Extensive Knowledge & Experience – Our CPA’s, Enrolled Agents and Tax Advisors have up to date knowledge on the constantly changing deductions and credit changes with over 65 collective years of tax preparation and accounting experience.
– Quality control – All returns are double-checked.
– Plan Ahead – Our Enrolled Agents and Tax Advisors will plan your best payroll withholding for the upcoming year.
– Reduce Taxes – Tax Planning to reduce overall taxes in the upcoming year for your business.
– Deductions & Credits – Extensive review of your return for deductions and credits.