Who doesn’t want to get the most from their tax refund? Filing online is a great way to maximize your tax return, and in 2008 nearly 90 million people (close to 58% of all tax filers) jumped on the internet bandwagon. Internally, the IRS has been working diligently in trying to increase the number of electronic filings by making their site easier to navigate. With competitive software business offering similar services, that number is sure to set records in the coming years.
Why You Should File Your Taxes Online
If you are on the fence about filing electronically, you should reconsider. This time-saving system provides you with electronic records, faster refunds (in as little as 10 days), higher return rates and better accuracy. When filing your returns electronically, you’ll be required to accurately input your most private information, including:
- Personal identification (drivers license, social security numbers) for those filing the tax return and their claimed dependents
- Last year’s return information including PIN number (if previously filed electronically)
- All legal income documentation (W-2s, 1099s and interest statements from investments such as real estate or banking)
- Bank account numbers
- Proof of government benefits such as social security and unemployment compensation
- Medical, health and dental expenses (especially to qualify for a medical deduction)
- Mortgage interest payments (another deductible)
- Loan interest payments for qualifying debt such as student loans
- Receipts for itemized deductions such as tax preparation or charitable deductions
- Proof of tax credits from any stimulus incentives you have taken advantage of
Despite the rising popularity of such tax preparation software as TurboTax, TaxCut and TaxAct, consumers should be aware that only the IRS has “standards for securing customer tax information.” According to the Government Accountability Office, the “IRS provides some oversight of the tax software industry but does not fully monitor compliance with established security and privacy standards.” However, since the “IRS cannot compete with private enterprise and does not offer free e-file software or direct filing,” using the third party providers for electronic preparation, is currently your only option.
Easy Ways to File Taxes Online
If you are an individual interested in taking advantage of filing electronically then making some simple steps will make the task easier:
- Organize all your paperwork.
- Allow yourself plenty of time (weeks vs. hours) to ensure that you can thoroughly read all the instructions and accurately enter your information.
- Review! If you can, have a fresh set of eyes double check the information before submitting it.
- Use a home computer in a quiet space with a high speed connection.
- Choose the program of your choice and follow the instructions they provide so you can maximize your 2009 tax return.
Filing taxes online will make your life much easier once you are more accustomed to it. You’ll never have to depend on another person to do your taxes again!