The dreaded tax season comes once every year and forces people to decide whether to file their taxes online or by paper. With technology advancing drastically in the last decade, there are several e-file websites to choose from, but many people still want to file manually.
However, this may be the year to go paperless. Here are a few reasons why e-filing your taxes could be your best decision:
1. Faster refund
If you know you're going to receive a healthy tax refund, waiting for the check to come to you is always the hardest part. Instead of waiting for several weeks to receive a check in the mail, get your return much faster with e-filing. According to U.S. News and World Report, the IRS says roughly 90 percent of people who filed their taxes online received their refunds in their checking accounts within 21 days.
The IRS simply files taxes on a first-in and first-out basis, so those who file the earliest will receive their money in a checking account first, the source stated.
2. Ideal for early or late filers
Some of you may like to file as early as possible or seconds before the tax deadline. No matter which side you're on, e-filing is perfect for both types of people. According to Bankrate, each year, more people file electronically, and some of this is due to the fact you can file on the first or last day. E-filing is an easy and a fast method to get your delicate information into the IRS.
3. Easier to use
Bankrate noted IRS data showed that 125.8 million people filed their taxes online in 2014, which was a 2.7 percent increase from the previous tax season. This number continues to grow because of the simplicity of filing taxes online. Additionally, many online tax providers created easy-to-use and straightforward software that asks you simple questions to help you get your taxes filed.
Also, numerous millennials are entering the workforce, which means this online software is growing more popular for the generation. While the process is easier than filing through paper, your taxes are more likely to be accurate. According to U.S. News and World Report, one of the most common mistakes people make on their paper tax returns is providing an incorrect Social Security number for themselves, their spouses or their dependents.
However, e-filing prevents this mishap by preventing you from continuing without entering a correct Social Security number to match the person. This makes the process much faster and more efficient.
4. Saving money
One of the best reasons you should consider filing electronically is to save money on the process. Getting audited is no walk in the park and can be a stressful and sometimes costly event. According to LinkedIn, the IRS finds 20 percent of paper form taxes have mistakes, while only 1 percent of those completed online show errors.
It's simply better to be safe than sorry, and filing online could prevent a lot of headaches. Additionally, filing your taxes on your own is much more affordable than getting a professional to do so. While some people's taxes are extremely difficult, most people find e-filing to be quick, efficient and easy.
Using direct deposit features on e-filing will ensure your tax refund makes it safe and sound into your checking account. To get the most out of your banking needs and with financial management, feel free to talk to one of our helpful staff members today.
For more information about smart ways to manage your finances, contact Landmark Bank.
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