Unofficial Tax Guide

E-filing is a convenient, popular, and easy way for taxpayers to prepare and send in their income taxes. With many taxpayers waiting until the last minute to prepare or send out their taxes, e-filing has become extremely popular. A late delivery to the post office can cost a taxpayer additional money in fines or late fees. E-filing is an easy way for many internet savvy taxpayers to prepare and submit their taxes on time.

E-filing is used by a large number of individuals, including professional tax preparers and those who are preparing their own taxes. E-filing uses the same forms and calculations to determine the amount of money owed or the total of a refund due. To use the e-filing system there is some important personal information that will be needed. This information includes a social security number, the social security numbers of any family members, W-2 forms, receipts for deductibles, and any banking account information. Since all of the above mentioned items will be needed to e-file they should be gathered and arranged ahead of time.

There is also a program that is provided by the IRS and a group known as the Free File Alliance. This program allows taxpayers who meet certain eligibility requirements to have their taxes prepared for free by using a professional tax software program. The most common requirement for a tax payer to use the Free File program is that they must have an adjusted gross income that is $50,000 or less. There are also other rules and restrictions that can be placed on the Free File program depending on the company providing the software or the state that the taxpayer resides in.

E-filing is expected to gain additional popularity in the 2006 tax season due to the fact that the Telefile program was recently canceled by the IRS. This program previously allowed qualifying tax payers to submit their tax information using an automated telephone program. E-filing is expected to be used as a replacement for many taxpayers who previously relied on Telefile to file their taxes each year.

E-filing is also convenient because the IRS will send a message or notice if a tax return was received or denied. There are many reasons why a tax return could be denied when filed electronically; however, the most common reason is due to a mistake in personal information. In case of a denial notice check and make sure that all social security numbers, names, addresses, and birth dates are all correct. Once the mistake has been found and corrected the tax forms can be resubmitted.

E-filing is a popular program that is easy for many taxpayers to use. If an individual has a computer with an internet hookup there really isn’t any reason why they cannot be using the e-file program to file their taxes.