E-File 101- Options for the Fast and Simple Way to Electronically File Your Taxes

E-filing, or electronically filing your taxes, is becoming more and more popular every year.

Last year, IRS e-file delivered 95 million tax returns, 66 percent of all returns filed.

According to the IRS, the error rate is 1% for efiling vs. 20% for paper returns, meaning everyone should consider e filing to reduce their chance of error.

You might think efiling is only for those who are receiving a tax refund, but according to the IRS, for those who owe additional tax, e-file is still the best option. People can file now and pay later, as long as the payment is received by April 15.

As someone who has filed his taxes electronically for the last 4 or 5 years (at least, I would say, but I would have to go back and check to see exactly how long I have been filing my taxes electronically), I can attest to fact that it is much easier than filing out a paper return, and if you are due a refund, you get it much faster than if you fill out a paper form and mail it in. So what are the options for efiling?

E-File for Free Eligibility

If you make under $57,000.00 per year, you are likely eligible to efile for free. The IRS has a page with a list of companies that you can choose from to use for the free efile program, some of which have slightly different criteria for whether or not you qualify to use their service to take part in the free efile program. Some are slightly lower limits than $57,000, while others have certain age restrictions or even provide additional filing eligibility to those in the military, for example.

Free Fillable Forms

For those who do not qualify for the free e-file program, the IRS also provides free fillable forms, if you are interested in filling out the forms yourself (they are fillable pdf forms), which you can then file electronically for free. The forms look just like the regular IRS tax forms (1040EZ, 1040, and 1040A, for example), and according to the site it does provide a basic math calculator, which may be enough to get by with, but I have not tried this option myself.

Online Tax Filing and Software Options for E-Filing

If you want to use tax software or an online tax preparation service to file your taxes, there are many options available to choose from, such as Turbotax , H&R Block At Home (formerly Taxcut), and Complete Tax. Most will allow you to file a simple return, using a 1040EZ, for free, so if you are eligible you may be able to file your return for free even if you don’t qualify directly through the IRS sponsored program. Since my tax returns are not always simple, I like using online tax filing vs. paper forms to make sure my math is correct, I am getting all of my deductions or credits, getting my return filed faster and, most importantly, if I am getting a refund, to get that as soon as possible-it’s my money, after all!

Direct deposit of refund

Whether you efile or fill out a paper form, you will have an option for the IRS to mail you a paper check or direct deposit your refund into a bank account, assuming you are getting a refund. I have filled out paper forms and mailed them in and gotten direct deposit of my refund, and based on my experiences you will get your refund quite a bit faster if you opt-in for direct deposit to your checking account as opposed to letting the IRS mail you a paper check. So if you are looking to get a refund as quickly as possible, a direct deposit from the IRS is the way to go.