Tax authority such as IRS pre-approved certain tax preparation software so that taxpayers can submit their tax returns through them, and this process is known as electronic filing or E-file. The software includes the recent information from IRS and it can help taxpayers to make sure their expenses and deductions, calculate the tax, and file the form correctly.
Taxpayers can file Form 1040, Form 1040A, Form 1040EZ, and Form 1040-SS (PR) via E-file. Since tax data is directly transmitted to agency’s computer, taxpayers can save time and money. Besides, taxpayers can receive confirmation or rejection notice within 24 hours after pressing the “send” button. Confirmation proves that taxpayers’ documents have been received while rejection notice means that their tax returns are not accepted by IRS and it also comes with the information about what should be corrected.
How to E-file the taxes?
Taxpayers can file their tax returns via E-file with the following steps.
- Gathering tax paperwork, including tax statements, social security numbers, receipts, etc.
- Answering questions from the software regarding tax statement and other information.
- Signing tax returns.
- Printing out tax returns.
- Submitting the tax returns.
Once taxpayers submit their tax returns, IRS will go through them and inform the software company whether the forms are accepted or not.
*Note that there are certain people who are not eligible for E-file, including the ones who are:
- Married couple who live in a community property state, but file separately
- Filing before Jan.15 or after Oct.15
- Filing a form that cannot be electronically filed
- Claiming a dependent that has been claimed already