More Taxpayers Take Advantage of Online Filing

Death and taxes are still inevitable, but today millions of Americans are opting to pay their government its annual due by filing income tax returns online. 73 million tax returns were e-filed in 2006, 20 million of those were filed from home computers, and the numbers continue to trend upward for 2007.

Online tax filing is easy, whether you choose to purchase e-filing software for your home computer, or to prepare and e-file your taxes online using a tax preparation website. And unless you enjoy the camaraderie of last-minute, late night races to the post office on tax day, online and on time filing can be just a mouse-click away.

Online tax filing is fast and that means refund dollars in your pocket sooner than with traditional filing. If the IRS confirms that you’re due a federal tax refund you can expect payment anywhere from several days (if you file online and qualify for the Refund Anticipation Loan option) to two weeks (if you opt to have your online return direct deposited to your bank account). Plan on a four-week wait if you file electronically and receive your refund by mail and six weeks if you file a paper return and the mailman delivers your refund.

Online tax filing is secure: The IRS adheres to strict security measures. It requires all electronic tax filing services to be certified and to comply with regulation that ensures your privacy as an online taxpayer. All websites linked to the IRS e-filing network must support encryption features that prevent hackers from accessing your personal information.

Here’s how online tax filing works: Whether you use offline tax preparation software, or a professional online tax service, the process of preparing and e-filing a return is pretty similar.

First, you’ll be asked to establish an account with a user name and password. The tax site will use your e-mail address to set up a secure link and confirm your identity. Once your account is logged, you’ll be able to omit the preliminaries if you use the service to prepare your return in subsequent years.

Next, you’ll submit personal and financial information that confirms your tax status, employment documentation, deductions and other information. This will determine your taxable income and, ultimately, what you owe or are owed by the IRS. If you have issues that aren’t covered by the software, many on-line services have tax specialists ready to respond to questions that are not overly complex.

After you’ve entered your information, but before you file, you can choose how to pay any fees or money owed on your return. Select from a menu of online options including a credit card, electronic funds transfer, or if you qualify, the Electronic Federal Tax Payment System.

After you’ve finished navigating the site, you can click and send. Once your return is accepted for processing by the IRS, you’ll receive an e-mail confirming its status.

For more information on electronic filing, check online professional tax preparation sites such as www.taxpedite.com, or go to the IRS web site at IRS.gov.

Taxpedite is an online tax service, offering secure online tax preparation and e-filing for state and federal tax returns. With Taxpedite, every step of tax preparation and e-filing is completed online, so there is no software to purchase or download. Taxpedite online tax filing service is tested and approved in compliance with all IRS e-filing standards and current tax law to minimize your filing hassles and maximize your refund. Taxpedite. Taxes. Online. Fast.