You've decided it's finally time to take that big technological tax step. This year, you're e-filing.
Unfortunately, most of us aren't that lucky. So just who has to file a tax return?
You definitely won't be alone. More than 70 million taxpayers electronically filed returns last year. It was another e-filing record and the computer-relayed returns accounted for well more than half of the total 1040s the IRS received in 2006.
Unfortunately, most of us aren't that lucky. So just who has to file a tax return?
You definitely won't be alone. More than 70 million taxpayers electronically filed returns last year. It was another e-filing record and the computer-relayed returns accounted for well more than half of the total 1040s the IRS received in 2006.
Tax Forms
Looking for help with taxes? You're in the right place. View and print the most current forms from the IRS.
- Form 1040
- Form 1040 EZ
- Form 1040 (Schedule A&B)
- Form 1040 (Schedule C)
- Tax Tables
- Tax Rate Schedule
- More Federal Forms
- State Forms
Not suprisingly, e-filing comes in two waves: early filers, who generally are getting tax money back and like the speed e-filing offers in getting the refund process going, and taxpayers who wait until just before the April deadline to hit the "enter" key.
In addition to the appeal of more precise time control over your 1040's delivery, electronic filing offers several more attractions. In most cases, the computer filing programs have all the forms you'll need and they are regularly updated. That's particulary important this filing season, since some popular tax breaks were approved too late for the deductions to make it onto the paper versions.
In addition, you're taken step by step through the filing process. And the electronic calculators make fewer mistakes, as long as you enter in the correct numbers.
But the most appealing e-filing advantage: Your return gets to and is processed by the IRS sooner. The IRS says turnaround on an e-filed return is, generally, around 14 days. That speed is especially welcome if you're expecting a refund.
Even better, there are a variety of ways to electronically submit your return. Here's a look at your e-file options.
Hire a tax professional The IRS says computer filing through an authorized tax professional has been the core of e-filing since the system debuted in 1986. Paid tax preparers work with clients to complete their returns and then send them electronically to the IRS. Some preparers take care of the whole process, getting the taxpayer's raw data, exploring appropriate tax breaks, filling in the electronic forms and then submitting them. Others let the taxpayer fill out a paper return and then simply transfer that information to the electronic format for filing.
Tax professionals filed more than 50 million returns electronically last year, so it's likely there's an IRS-authorized e-filer in your area. There are many types of tax professionals, so be sure you find the one that suits your tax needs.
In addition to the appeal of more precise time control over your 1040's delivery, electronic filing offers several more attractions. In most cases, the computer filing programs have all the forms you'll need and they are regularly updated. That's particulary important this filing season, since some popular tax breaks were approved too late for the deductions to make it onto the paper versions.
In addition, you're taken step by step through the filing process. And the electronic calculators make fewer mistakes, as long as you enter in the correct numbers.
But the most appealing e-filing advantage: Your return gets to and is processed by the IRS sooner. The IRS says turnaround on an e-filed return is, generally, around 14 days. That speed is especially welcome if you're expecting a refund.
Even better, there are a variety of ways to electronically submit your return. Here's a look at your e-file options.
Hire a tax professional The IRS says computer filing through an authorized tax professional has been the core of e-filing since the system debuted in 1986. Paid tax preparers work with clients to complete their returns and then send them electronically to the IRS. Some preparers take care of the whole process, getting the taxpayer's raw data, exploring appropriate tax breaks, filling in the electronic forms and then submitting them. Others let the taxpayer fill out a paper return and then simply transfer that information to the electronic format for filing.
Tax professionals filed more than 50 million returns electronically last year, so it's likely there's an IRS-authorized e-filer in your area. There are many types of tax professionals, so be sure you find the one that suits your tax needs.
Do-it-yourself options
If you're comfortable doing your own taxes, you can buy tax software and put it on your PC. This filing segment showed the most growth last year, with almost 20 million taxpayers e-filing for themselves. You can either pick up the program at your neighborhood electronics store or department store or go to the company's Web site and download it. These packages promise to save you time, as well as cash. Just make sure you choose software that fits your filing (and computer) situation.
E-file online Don't want to clutter up your computer with a program you use just once a year? Go directly to one of the many tax software Web sites and e-file directly online. You will still have to pay for the service, but it's generally cheaper than buying the software and you don't have to worry about working through any glitches that pop up when you load a new program onto your PC. Some people, however, aren't comfortable with their personal tax information floating out there in cyberspace if they can't complete and file their 1040 in one online visit.
Use the Free File Alliance Each of the three previous e-file options will cost you. But you may be able to file for free if you meet criteria established by the various members of the Free File Alliance, a government/tax software industry partnership created to encourage more e-filers. You can find participating members at the IRS's special Web page on Jan. 16, when this year's Free File program begins. While the Alliance makes it cheap and easy for many taxpayers to file, it's not available to everyone. This year only taxpayers with adjusted gross incomes of $52,000 or less can use the free filing option.
Next: Most Overlooked Deductions
Return to the AOL Tax Center
E-file online Don't want to clutter up your computer with a program you use just once a year? Go directly to one of the many tax software Web sites and e-file directly online. You will still have to pay for the service, but it's generally cheaper than buying the software and you don't have to worry about working through any glitches that pop up when you load a new program onto your PC. Some people, however, aren't comfortable with their personal tax information floating out there in cyberspace if they can't complete and file their 1040 in one online visit.
Use the Free File Alliance Each of the three previous e-file options will cost you. But you may be able to file for free if you meet criteria established by the various members of the Free File Alliance, a government/tax software industry partnership created to encourage more e-filers. You can find participating members at the IRS's special Web page on Jan. 16, when this year's Free File program begins. While the Alliance makes it cheap and easy for many taxpayers to file, it's not available to everyone. This year only taxpayers with adjusted gross incomes of $52,000 or less can use the free filing option.
Next: Most Overlooked Deductions
Return to the AOL Tax Center
