Most Americans nowadays tend to file their taxes online because of the convenience. Although there are various tools available to help e-filing, you still need to know some steps before you start your e-filing process.
Gather all the required paperwork
If you are an employee, the paperwork should first include your W-2 forms, which are the wage and tax statements you have received from your employers. If you are self-employed or you work as an independent contractor, then the paperwork should include your 1099 forms.
Besides, you will need other paperwork, including details on the interest earned on investment income, bank accounts, and the student loan interest you have paid within the last year. You should also gather the information on your mortgage statements and the contributions made to a Health Savings Accountant (HSA) or an Independent Retirement Arrangement (IRA), if any. Carefully gather your information and be aware that the earlier you make the preparation, the more time you can save later.
Find the suitable e-filing option
Choosing the right e-filing tool will enable you to file your taxes electronically without paying much money. There are actually a variety of free e-filing options and online forms available. The IRS (Internal Revenue Service) website, for example, provides different tax forms and options for taxpayers for free. You may find other e-file program online. Compare the programs and choose the best suitable option.
Fill in all the applicable information
Most of the software or programs will solicit the required information you have to provide, mainly your income and the deductions. You should then import all of your information on income and deductions. If you prepare the paperwork well previously, this process won’t be too energy-consuming.
Check for errors
Find out if there are any omissions or errors. A single missing or typo can mean a great difference. Most programs will walk you through making the corrections. Just be careful about every detail you have typed into the computer. The audit meter will review your information, If you find your audit risk high, you had better check the information again to sure it is 100% correct.
File your tax
File the tax documents over the internet before or on the filing deadline. The software will promote you for the banking information. Type the name of your bank and the account number carefully. If you cannot meet the deadline, you may apply for an extension. After the filing, you can wait to collect the refund. Generally, the IRS will automatically deposit the refund into the provided account within 7-21 days.