We all have important documents. From the title to your car or house, to birth certificates,  Social Security cards, and tax returns. We have to protect those important records and documents. You want to make sure that you can access these records when you need them, but you also need to make sure they are safe from the ravages of natural disasters.

Natural Disaster

If your home sustains damage because of flood, fire, tornado, earthquake, or act of God, you want to make sure that your important records aren’t destroyed in the process. One way to do this is to purchase a properly rated safe. There are safes designed to withstand fire and flood. Your original documents can be well protected. But what happens if you can’t access them when you need them? The answer is to keep an electronic copy in a safe place.

Keep Your Records Electronically

One way you can improve your ability to keep your records safe and accessible is to keep them electronically. Many investment brokers, banks, and even insurance companies provide electronic copies of important documents and statements. In this case, it’s often possible to access at least 12 months (or more) worth of information online.

You can also create your own electronic files. Just scan your original documents to create an electronic copy. You can keep these on a flash drive separate from the originals. You can keep it in a safe deposit box at the bank or a safe at your home (unless that’s where your paper copies are). It’s also possible to back up your files using secure cloud storage services. Even emailing them to yourself can create an easily accessible backup copy available where ever you have Internet access.

Protecting Your Electronic Files

Naturally, since these are all sensitive documents, you will be concerned with security. The downside to storing your files electronically is that you run the risk of someone seeing your files. You can reduce the likelihood that someone will see sensitive personal financial information by encrypting the files and/or protecting them with a password that would be difficult for others to guess. This will make it more difficult for others to access your information, but it still leaves it largely accessible to you, with a little extra effort.

When protecting your electronic files, it’s important to make sure that the information is regularly updated. When you make changes to beneficiary information, or if you do something new with an account, you should make sure that you have the most up to date records. Using an external hard drive or flash drive can help you overwrite old information, as can online storage. Burning to disc can be effective, but you might need a new disc each time you change your information.

Lastly, you need to know that your important documents are safe and accessible. Keep originals in a good safe, but also consider keeping electronic copies. You might eventually need the originals of your important papers, but if they are buried under the rubble of your home, the electronic record that you have stored in a secure cloud drive online might suffice until your records are available. Take the proper steps to protect your information, and you will be prepared in any emergency.

More than ever, people are using home computers for tax preparation and/or realizing the advantages to e-filing their federal tax return. The IRS is reporting that as of March 4, 2011, almost 19 million tax returns have been e-filed from home computers. That’s almost 6% more when you compare it to the number of e-filed returns last year at the same time.

There definitely continues to be an upward trend in the number of people who e-file. Pretty soon, the vast majority of all returns will be filed electronically. The IRS is also reporting that as of March 4, 2011, 52 million tax returns have been filed. Of those nearly 47 million are e-filed. Seems many people realize the benefits to e-filing their taxes, which include:

1. Fewer tax-time expenses. You can e-file your federal return for free with most services, including TurboTax. It’s hard to beat free. Taxpayers who e-file don’t have to worry about a stamp, envelope, or trip to the post office (for delivery confirmation). Of course, if you hand-write your tax return, then you could potentially come out ahead expense-wise. But you’d still have to overcome these other advantages to e-filing.

2. Getting your refund faster. Returns that are filed electronically get processed by the IRS faster. Those who e-file can begin checking the status of their returns after only 48 hours. Simply put, if you e-file and if you’re due a refund, you’ll get your money back faster. In addition to this, if there are errors on your return, the IRS can pick up on them quicker if you e-file. They’ll send an error report back to you and you’ll have the opportunity to quickly make the changes and re-file. As you can imagine, the turnaround times for paper returns is much longer. Finally, there’s also less of a chance of your return getting lost if you e-file. In fact, there’s zero chance your return will be lost. But the same can’t be said for paper returns.

3. Better security. At first glance it may seem more risky to transmit your personal details and banking information over the internet. But e-filing uses encryption technology, which scrambles your data before it’s transferred from your computer to the IRS. By e-filing, you never have to print your return, nor do you have to physically mail it. If you mail your return, your personal data, written in non-encrypted English, is available to anyone who can access and open the envelope.

Of course, some people cannot e-file because (1) they are amending a return, or (2) they might have to file a form that isn’t on the list of forms that can be e-filed with the IRS. If this is you, then get to work on that paper return so you can avoid the rush.

Finally, you might not want to e-file your tax return because you owe money and you want to delay payment for as long as possible. If you are so inclined, mailing your return with a check on the last day to file taxes, April 18th, will delay your tax payment as long as legally possible. Just be sure to bring along some reading material for the post office.