How Filing Taxes Online Can Save You Money

Filing paper returns has now become a thing of the past. Nearly 70% of US taxpayers file their income tax returns online each year and this number is growing. Most people choose to file online due to the fact that it is a much more convenient way compared to the traditional paper filing method. We often forget to choose to file electronically and it also saves us a lot of money. Let’s take a closer look at how we can save while choosing to file our taxes electronically.

Your savings start from the moment you get your tax return forms and you know the latest provisions applicable in the current tax year. Previously, one used to buy these forms at local stationary markets or would have to spend on trips to the nearest IRS center to get their copy of the latest income tax provisions and applicable forms. Now you can do the same sitting in your office or at home. The Internet provides you with a ton of information at no additional cost. You can get the latest information on the application of provisions in the current year along with various forms required to file your tax returns. Guess what, you don’t even need to spend to print these forms as they can be filled out online and submitted to the IRS.

In the traditional method, you would have to prepare your tax return package and visit the post office to send it to the IRS. Now you can completely do away with that old exercise and save time and money visiting the post office. You also get additional time to file your return, since it can be filed 24 hours a day, 7 days a week, until midnight on the last date, which is usually April 15 of each year.

While filing your returns online, you may choose to receive help from computer software that is also available at no cost to certain categories of taxpayers. You can even save on the cost of hiring a CPA to prepare your tax returns.

In the traditional method, it would take a few months to receive your tax refund check. In the meantime, in case you have changed your household, these checks will be returned to the IRS and you will have to go through a procedure to get them again, which again will cost you something. Compared to the latest online system, your refunds can be processed very quickly and can be electronically deposited into your bank account within 8-10 days after your tax return is processed.