Benefits of Filing Your Tax Return Online

There are many benefits to filing your tax return online. Many are obvious, but there are other advantages you may have not considered. In the 2006 tax year, there were over 73 million people who filed electronically, and that number is expected to increase significantly for the 2007 tax year. What are some of the reasons why filing online has become so popular? Here are some of the benefits:

Convenient Preparation
You simply save a lot time filing electronically online - no need to manually fill in boxes and forms (plus you save a few trees!). In many cases, you can simply download all your W-2 and financial information over the web. Of course, many people prefer to have these forms physically in front of them.

More Accuracy
Any reputable online tax provider or program will automatically check your math and inputs step by step - it will immediately alert you of any problems. This will reduce your chance of an audit and eliminates the need to double check your return manually with a calculator.

Extra Help
Most tax return providers or programs provide automated help and tips that may reduce your tax bill or provide options you may not have been aware of previously. They also flag missing or incomplete information on your tax return.

Speed
Filing your taxes online is much faster than mailing your return via the postal service. The IRS usually responds via email within 48 hours and you will likely get your tax refund within 2 weeks - also direct deposited!

Security
When working through an authorized IRS provider, the transaction is very secure (much more so than normal USPS mail!). See our article on Tips for Filing a Safe Online Tax Return for more information.

Data Protection
A good online tax provider will backup and keep your tax return data securely stored for at least 2+ years, often with an option for much longer. This is a great failsafe should something happen to your home computer or hard copies (e.g. flood, fire, etc.).

The fact is, most people who file online will never go back to preparing and filing their taxes manually - the process is easier and faster. We actually predict that the IRS will eventually phase out paper return filing in the future!