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January 15th has come and gone. That’s the deadline businesses are given to have your income reports done and mailed to you, so that you can prepare your tax returns and send them to the IRS by April 15th.

Submitting your tax return by e-file and mailing it on paper are the only two ways to send your tax return to the IRS. E-file is available for both Federal and State income tax returns. While there is no cost to e-file a Federal return, there is a fee to file a PA State tax return electronically. Filing on paper may be cheaper, but refunds take longer.

Federal E-file benefits

Electronically submitting your tax return to the IRS is:

• Faster
• More convenient
• More secure than paper filing
• If the IRS owes you a refund, it can be directly deposited into your bank account.
• If you owe the IRS, you can authorize the IRS to electronically withdraw the money you owe directly from your bank account. You can tell the IRS not to withdraw the money until the last minute on the filing deadline, even if you filed your return earlier.

There are 3 ways in which you can e-file your returns.

1. Have your taxes done by a tax preparer and they will e-file for you for an additional charge.
2. Prepare them yourself after purchasing an out-of-the-box tax software program.
3. Use a Free  online web software program.

 

Confirmation from the IRS

The biggest benefit for electronic filing: you will receive a confirmation that the IRS has received your tax return. This is proof that the IRS received your tax return and has started processing it. If the IRS does not accept your tax return, you will get a rejection notice. The confirmation or rejection notice is sent within 24 hours of transmitting your return. The IRS e-file rejection letter will tell you how to fix your tax return so it will be acceptable to the IRS.

 

Faster and More Accurate

E-filing has some added benefits too. Your refund is likely to be processed faster. E-filing means the IRS does not have to re-type your tax return at their service center, which means less chance that the IRS will make a mistake when processing your return.

E-file limitations

Electronically is not for everyone, though. You must file on paper if you are:

• Married, but filing a separate return, and you live in a community property state,
• Claiming a dependent who has already been claimed by someone else,
• Submitting a tax form that cannot be electronically filed (such as a multiple support agreement),
• Filing before e-file begins (January 15) or after e-file ends (October 15).

 

Paper Filing

Filing on paper is the only option for you if you are not eligible for e-filing. Because the IRS re-types every paper return it receives, you should seriously consider e-filing if you meet the guidelines that allow you to do so.

Quick Tips for Paper Filing

 

• Make sure your name and Social Security Number are on Every Page, both front and back.
• Double check your address. This is the address where the IRS will send your refund and any notices. If you will be moving, consider using a PO Box or other permanent address.
• Double check the math. Math errors are the number one reason why the IRS changes a tax return, or flags a return for an audit.
• Mail your return to the right Service Center.
• Get an automatic extension if you are mailing your return close to April 15th. This will prevent penalties just in case the mail is late.
• Send your tax payment with your tax return. If you are mailing the return close to April 15th, make your tax payment by web pay, credit card, or mailing a check with the automatic extension form. Make sure your payment gets to the IRS by April 15th to avoid any late payment penalties.
• If you are mailing your return close to or on April 15th, ask the postmaster to HAND STAMP the postmark on your envelope to ensure you won’t be charged a late penalty. It’s also advisable to pay a little extra to the USPS for a Delivery Confirmation of your tax return.