Online Tax Filing Review

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Online tax filing services and tax software enable tax filers to prepare and file their tax returns faster than doing it by hand and mailing it at the post office. 

• If the IRS E-file (electronic filing with the IRS) is used, you get an e-mail response from the IRS within 24 hours regarding the tax filing status i.e. whether it was accepted or rejected.
• Refunds are processed faster by the IRS with tax filing online and you can get your refund check within 7 to 10 days.
• Filing online is less prone to errors as the programs used carry out required calculations and perform other checks to ensure that the tax preparer entered the correct information.
• It takes less time to prepare and file a tax return using online tax filing than using pen and paper.
• You may be able to pay your tax bill by electronic transfer with some online filing programs. This could imply specifying a bank account number or credit card number. 

The following are some advantages of online tax filing over the use of a software package. Eventually, the method that you use should depend on the unique features that you want from either an online tax filing website or tax software.

• There is no software to install or upgrade, you don't need to figure out if the program can run on your operating system or if you have enough computer resources to run the program. If you have access to the internet and already use a web browser, you most likely have the computing requirements to file your taxes online.
• Online tax filing websites can be accessed from any computer connected to internet. So you can file your taxes at a location most convenient for you.
• You don't have to figure out which state tax filing software to use or how the federal tax filing data will be merged into the state tax filing software. The online tax filing program automatically takes care of this.
• You don't have to worry about computer backups or a virus infecting your computer while you are filing your taxes. Since your tax data is held remotely at the online filing company's computer, it is safe from viruses and the like.
• Most online tax filing websites enable you to save your work so that you can resume where you left off at a later time.
• The taxes that you filed on the previous year is safely stored by the online tax filing program remotely. All necessary information from the previous year's tax return could be automatically pulled into the current year's tax return.

Some points that you should take note of before selecting a website or software for filing your taxes are:

•  If your tax return is complex, the online tax filing solution that you use should provide good step-by-step guidance on how to go about preparing your taxes. If it is very complex, you may need a program that includes tax advice by a professional.
• When comparing the costs of preparing your taxes, carefully study what is included in the tax filing package. The literature on some online tax filing programs only give a partial cost e.g. only the price for filing federal taxes. Take note of how much it will cost to prepare federal taxes, state taxes, electronically file federal taxes and electronically file state taxes. 
• Ensure that the online tax filing program supports tax filing for all the states that you need to file taxes in.
• With some online filing programs, you pay a flat fee for preparing and filing federal and state taxes. With other programs, you are allowed to pay for each option that you select. If you don't have to file state income taxes in the state that you live in, you could consider a program where you pay only for filing federal taxes. Likewise, for somebody who has to file multiple state taxes, it may be cheaper to use a program with a flat fee for filing all the taxes.
• Some states provide free online tax filing for their residents. If you live in such a state and don't have a complex state tax return, you may consider using such a service for filing your state taxes.
• An online tax filing service may allow you to carry out free online tax filing or by downloading software. This usually applies to federal taxes and may not include electronic filing. So you may have to print out your tax return and mail it at the post office. If you live in a state that provides free electronic filing, then you may be able to file both taxes online or by using free software.
• Most online tax filing websites do not charge you a fee until you're finished with the tax filing and want to file the taxes with the IRS. If you get stuck and are not getting much technical support from such a service, you may consider switching to another online tax filing website.
• Determine if you feel comfortable with the type of technical support required for the online tax filing program. Methods of support available include e-mail, online chat, phone, online Frequently Asked Questions (FAQ) database and others.

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