Filing paper returns have now become a thing of past. Nearly 70% of the American Taxpayers are filing their income tax returns online each year and this number is growing. Most of the people choose to file the returns online due to the very fact that it is much more convenient way when compared to the traditional method of paper return. We often forget choosing to e-file returns also saves us lot of money. Let us discuss further how we can save while we choose to e-file our tax return.
Your savings start right from getting your income tax forms and know the latest provisions applicable in the current tax year. Earlier one use to buy these forms from the local stationary marts or would have to spend on travel to the nearest IRS centre to get their copy of the latest income tax provisions and applicable forms. Now you can do the same just sitting in your office or house. Internet provides you with loads of information at no extra cost. You can get the latest up to date information regarding provisions application in the current year along with various forms required for filing your tax returns. Guess what, you don’t even need to spend in taking print out of these forms as they can be filled online itself and submitted to IRS.
In the traditional method you were require to prepare your packet of tax return and visit post office to parcel it to IRS. Now you can totally dispense with that old exercise and save on your time and cost to visit post office. You also get extra time for submitting your return as one can submit the same 24 X 7 till midnight of the last date which is usually 15th April each year.
While filing your returns online you can choose to take help of computer software which are also available free of cost to certain category of taxpayers. One can even save on cost of hiring a CPA to prepare your tax returns.
In the traditional method it would take few months in receiving your tax refund cheque. Meanwhile in case you have changed your home these cheques would be returned to IRS and you will have to follow a procedure to get them again which will again cost you something. When compared to the latest online system your refunds could be processed really fast and can be electronically deposit in your bank account within 8 -10 days after your tax return has been processed.
Source by Amol Gupta