Is it Better to e-File or Mail a Federal Return?
According to the Internal Revenue Service (IRS), in tax year 2008, nearly two-thirds of all tax returns were filed electronically. With the growing use of tax preparation software and Internet access, e-filing offers many benefits over mailing your federal tax return.
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Who Can E-File?
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Anyone who uses tax preparation software or a tax preparer can e-file. The IRS also offers Free File, which is an online tax preparation software system that allows you to e-file.
Cost
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The IRS does not charge to e-file. In most instances, your e-filing is included with tax preparation software programs and most tax preparers do not charge an additional fee to e-file your federal return. Families earning less than $57,000 can use the IRS' Free File at no charge. If you mail your return, you must pay the cost of the stamp.
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Confirmations
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When you e-file, the IRS will send a confirmation usually within 48 hours. You will be notified if your return has been accepted or rejected. You do not receive a confirmation for mailed returns.
Accuracy
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E-filing also improves the accuracy of your return. According to the IRS, paper-filed returns have a 20 percent error rate compared to only 1 percent on returns that are e-filed.
Refunds
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You will receive any refund that may be due to you quicker if you e-file. When e-filing and selecting direct deposit, you can have your refund in as few as 10 days.
Refunds requested on mailed returns can take weeks.
Payments
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If you owe tax, you can e-file now and pay later. This is not true when mailing your federal return. Regardless of when you e-file, any taxes that you owe are due April 15.
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