E-File New Way for Taxes: Federal and State
With the incredible convenience offered by the Internet and online data transmission, many people are choosing to e-file state taxes. Taxes are frustrating and time-consuming, so it is no wonder that so many people dread tax time and even put off filing their tax returns until the last minute. However, there are ways to make the process easier other than having someone else prepare the tax returns (which can sometimes be quite expensive). There are different software programs that help with the preparation process, and it is now possible to e-file state taxes and federal taxes together, resulting in greater efficiency and less wasted time.
Reasons to E-file State Taxes
If you think you might want to e-file state taxes, the first thing you need to know is what is actually meant by "e-file." As in email and ecommerce, the "e" stands for electronic, and this means that the tax returns are processed and sent to the IRS electronically. Although this seems simple and not much different from the traditional paper tax returns, there are actually quite a few benefits to e-filing. Security issues are not a concern because the IRS ensures complete privacy and protected, secure transmissions of all tax returns and data.
One of the biggest reasons to e-file state taxes is that is saves a great deal of time and eliminates long waiting periods. Since the information and tax returns are sent to the IRS electronically, they are received in less time. In addition to being received more quickly, the tax returns are also processed faster, as well, because all of the data is already in the computer system and data entry is not required. All of this time-saving means that the IRS will receive your returns faster, and you will receive you refund faster as a result.
Another great advantage of e-filing is that you can file your state and federal taxes together at one time. All of the information is sent to the IRS electronically, which then is responsible for getting your state information to the proper state tax authorities. The returns can be prepared together, paid together, and sent together, which dramatically decreases the time it takes you to get it all completed and sent in. E-filed taxes have less potential for error, as well, because the software automatically checks for errors and there is less room for human data entry errors. Although it may seem complicated and confusing at first, if you decide to e-file state taxes you will find out that it is a more efficient way to complete this frustrating responsibility.
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