Tips For Filing a Safe Online Tax Return

According to a 2007 Associated Press tax poll, more than half of the people responsible for preparing taxes filed their taxes electronically. This amounted to over 80 million people according to the IRS. It is clear the trend continues to grow but you still have to use some common sense when selecting an online provider to file your tax return.

Selecting an Online Tax Preparation Software Provider

Here are some of the features you should specifically look for in an online tax return provider:

• IRS E-File Provider - the tax return service should be an authorized IRS e-File provider.
• Secure Connectivity - your connection to the service should be over an "https" (not "http") connection when you login. The provider will typically have a signed certification from Verisign at the bottom.
• Business Longevity - the company providing the service should be well established with at least 5 years experience providing online tax services.
• Web-based Option (no download) - a web-based service is often preferred since a downloaded option can be compromised and needs frequent updating.
• Data Archival - look for a service that archives your tax return and makes it available for at least 2 years. In case you ever lose a local copy, you can retreive it from your tax return service.
• Technical Support - friendly and fast customer support during business hours is a must in case you run into connectivity or technical issues.

General Tips

• Remember that IRS and state tax agencies will never use email to request account or Social Security numbers - be wary of people claiming otherwise.
• Keep your computer up-to-date with the latest Windows patches.
• Avoid working on your tax return in public places or public wireless hotspots.
• Use a strong password for your tax provider login (no common names).
• Do not share your login ID or password with anyone.
• Keep a local copy of your tax return on your computer as well as a separate hard printed copy.

The online tax return business has come a long way in the last 10 years and filing online is clearly more secure than mailing your return through the postal service. As we have stated here, choosing a great tax software provider can offer you peace of mind and a stress free return process.