How to File Your Income Taxes Online
The Internal Revenue Service traditionally has accepted tax returns as having been filed as of the date they were postmarked. United States postal facilities often offer extended hours on tax day to accommodate the flood of last-minute filers. Innovations in computer technology have made those last-minute trips to the post office virtually obsolete with the advent of online tax filing. Most taxpayers with a computer and Internet access can now file their federal income tax return online and avoid the annual race to the post office.
- Difficulty:
- Moderate
Instructions
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1
Gather your tax records for the tax year. You will need the same information to file your income tax return online as you would to file a paper return. You will need income information contained on Form W-2, Form 1099-MISC, Schedule K-1, and other records that document your income, whether or not taxes were withheld from the income. You will need records for all expenses you wish to deduct, which may include medical bills, receipts for charitable donations, a mileage log, bank records and statements from your mortgage company. You will need the Social Security numbers for yourself, your spouse and any dependents you wish to claim.
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2
Determine which method of online tax filing is most appropriate for your situation. If you had less than the prescribed amount of income for the tax year, you may be eligible to use the IRS' freefile system (see Resources). The cutoff amount to use the freefile system was an adjusted gross income of $58,000 for the 2010 tax year. Approximately 70 percent of all taxpayers qualified for the freefile system in 2010, according to the IRS. If you earned more than the threshold for freefile, you may elect to file your tax return online using commercially available tax software. If your taxes are more complex than you wish to attempt on your own, you may use the services of a professional tax preparer who can file your return online.
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3
Log on to your tax software. Fill in the online forms using the same information you would fill out on a paper form. You must complete all online schedules, just as you would complete paper schedules. Once you are satisfied that you have completed your tax return completely and accurately, you will need to provide an electronic signature. You may use either your adjusted gross income from your last year's income tax return as your electronic signature, or you may use a five-digit electronic personal identification number that you create for yourself.
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4
Determine how you want to receive your refund or how you want to pay any taxes that may be due. You may elect to receive a paper check, but the IRS recommends choosing direct deposit. The IRS notes that taxpayers who filed their taxes online and elected direct deposit for their refund could receive their tax refund in as little as 10 days. You must provide your bank account number and bank routing number for direct deposit. You must provide a valid mailing address for a paper check. If you owe taxes and file your return online, you have the option of paying your taxes with a credit or debit card, by electronic funds withdrawal, or through the the U.S. Treasury's Electronic Federal Tax Payment System.
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Tips & Warnings
Figure your taxes using both the standard deduction method and the itemized deduction method. File your taxes using the method that provides you will the lowest tax obligation.
You can request an extension for filing your taxes, but there is no extension of the due date for paying your taxes.
