The Benefits of IRS E-file

E-file – the secure and accurate electronic filing method established by the IRS some 25 years ago that is now utilized by as many as 99 million taxpayers –  officially opened for business on Jan 14.

That means, now’s the time for everyone to get organized. E-file early and you not only avoid the long lines of procrastinators at the post office on April 18th (and the ensuing stress that comes with the territory), but you reap other benefits beyond peace of mind–like these:

Quick Tax Refund

One of the primary advantages to e-filing is that returns are processed in just 24-48 hours. This results in a refund in about 14 days as opposed to up to 6 weeks for a paper return; just 10 days if you don’t itemize tax deductions and use direct deposit.

Direct deposit options

If you’re an e-filer, you can designate up to three financial accounts to deposit your tax refund or use this money to purchase US Series I Savings Bonds. You can even gift the savings bonds to a child or grandchild to help save for college.

Accuracy rate

According to the IRS, 20% of tax returns prepared with paper and pencil have mistakes; the error rate on returns prepared electronically is just 1%. Furthermore, if there is a mistake on your tax return, the IRS can detect it and send back an error report in as little as 48 hours so that you can quickly fix the problem.

Opportunity to adjust your withholding

File early and you’ll likely see that having too much tax withheld from your paycheck. After all, 2 out of 3 taxpayers got a refund last year and the average refund was nearly $3,000. It’s better to adjust your tax withholding and get this money – about $250 a month! – as you earn it than to give the government an interest-free loan.

Comments (4) Leave your comment

  1. trying to e-file and line 24 is preventing me from it. It has $0.00 last 2012 and the same for 2013. and it shows it doesn’t match. And it wont let me e-file

  2. We cannot find an answer to:

    Is the schedule M still to be used for filing 2010 taxes? We filed schedule M for 2009, and recieved the refund. Cannot find out if can be used again for our taxes for 2010. We had thought it was a one time. However it shows as if we can, but do not want anything kicked back.

  3. My card is not here yet and the money is going onto it tomorrow. IF I don’t receive my refund card by today’s mail I will never use Turbotax again.

    Thanks for the stress! I have mouths to feed and bills to pay, waiting longer than what is needed is NOT SATISFACTORY. I’ll repost tomorrow if it’s received.

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