Best Reasons to E-File Taxes in 2016

Six Reasons to E-file your Taxes in 2016

Are you one of the few tax filers who still file a paper return? If so, now may be the best time to switch to e-file. Last year almost 129 million taxpayers filed their taxes electronically. They chose to e-file because it’s the fastest and safest way to file.

 

Here are the top six reasons why you should file electronically in 2016:

  1. Accurate and Easy. IRS e-file is the best way to file an accurate tax return. The tax software helps you avoid mistakes by doing the math for you. It guides you through each section of your tax return. It is much easier than doing your taxes by hand and mailing paper tax forms.
  2. Safe and Secure. IRS e-file meets strict security guidelines. It uses modern encryption technology to protect tax returns. The IRS has processed more than 1.5 billion e-filed tax returns to date. This year, the IRS is working with states and tax industry leaders to protect your tax return from identity theft refund fraud. This new effort has put strong new safeguards in place to make tax filing safer than ever before.
  3. Convenient and Often Free. You can e-file for free through IRS Free File. Free File is only available on IRS.gov. You may qualify to have your taxes e-filed for free through IRS volunteer programs. Volunteer Income Tax Assistance, or VITA, offers free tax preparation if you earned $54,000 or less. Tax Counseling for the Elderly, or TCE, generally helps people who are age 60 or older. You can buy commercial tax software to e-file or ask your tax preparer to e-file your tax return. Most paid preparers are required to file their clients’ returns electronically.

 

Get Your Tax Refund Quicker

  1. Faster Refunds. In most cases, e-file helps get your refund faster. That’s because there is nothing to mail and your tax return is virtually mistake-free. The fastest way to get your refund is to combine e-file with direct deposit into your bank account. The IRS issues more than nine out of 10 refunds in less than 21 days.
  2. Health Care Tax Reporting. IRS e-file can help with tax provisions of the health care law. The software will walk you through the lines on the tax forms that relate to the Affordable Care Act.
  3. Payment Options. If you owe taxes, you can e-file early and set up an automatic payment on any day until the April 18 deadline. You can pay electronically from your bank account with IRS Direct Pay. You also have many other options to pay, including electronic funds withdrawal or payment by debit or credit card. Visit IRS.gov/payments for details.

 

Taxpayer Rights in Front of IRS

Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your Taxpayer Bill of Rights. Explore your rights and our obligations to protect them on IRS.gov.

 

Save Money: Use IRS Free File to File Tax in 2016

Millions of Americans have safely filed their taxes and saved money using IRS Free File, and you can, too. You can use name-brand software or fillable forms to prepare and electronically file your federal tax return – for free. Combined with direct deposit, choosing e-file is the quickest way to get your refund.

 

Here are some tips about IRS Free File:

  1. Get Started at the IRS Website. The only way to use IRS Free File is through the IRS website. Once you choose a Free File company, you’ll click on a link to their website to prepare and e-file your federal tax return.
  2. Find Tax Breaks. The question and answer format of tax software will help you find tax breaks. This could include tax credits, such as the Earned Income Tax Credit. The software selects the appropriate tax forms and does the calculations for you. Free File can help with the health care law tax provisions as well.
  3. Free for All. If you made $62,000 or less you can use brand-name software. If you earned more, you can use Free File Fillable Forms. This option allows you to complete IRS forms electronically. It is best for people who are used to doing their own taxes.
  4. Easy Online Extensions. If you can’t finish your tax return by the April 18 deadline, it’s easy to use Free File to ask for a six-month extension. An extension of time to file is not an extension of time to pay. If you owe federal taxes, you need to estimate the amount and pay it with your request to avoid penalties and interest.

 

IRS Free File Alliance

The IRS partners with leading tax software companies, the Free File Alliance, to make this service available. Some companies offer free state tax return preparation as well. Choose your option.

Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your Taxpayer Bill of Rights. Explore your rights and our obligations to protect them on IRS.gov.