E-File Federal Tax Returns Vs. Mailed-In Federal Tax Returns
There used to be a time when your only option was to mail in your tax returns; however, now taxpayers can file tax returns electronically. In fact, e-filing, which is often free, is among the most popular methods used to prepare and file taxes. Though the end result of filing these forms is typically the same, e-filing will generally yield much faster results, especially if you are expecting a refund.
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E-filing
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The process of filing your tax returns electronically is called e-filing. A slew of tax preparation software programs can take you through this process, such as TurboTax and H&R Block. Some of these programs prompt you through a series questions, prepares the return for you and then files it for you electronically. You can also fill out blank forms on the Internet through other software programs and prepare your returns directly on the Internal Revenue Service's website.
As of January 2011, free tax preparation and e-filing are available if your adjusted gross income is $58,000 or less in 2010.
Also as of January 2011, if you live in California, West Virginia, Michigan, Minnesota, Utah, Wisconsin, Oklahoma, Rhode Island, Connecticut, Alabama, Massachusetts, New Jersey, New York or Virginia, you are mandated to file your 1040 return electronically.
Paper Filings
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If you choose to mail in your return, that is called filing a paper returns. If you go this route, call your local tax office for links highlighting the exact addresses you need. If you don't hand write your return, you can fill it out on a computer. Websites are available that will help you with this process, including that of the IRS, though you will need Adobe Acrobat Reader software installed on your computer in order to print out your return and mail it.
Note that if you hand-write and mail in your tax return, you could introduce errors. You are responsible for the accuracy of the return, including doing all of your own math. If you expect a refund, after paper mailing your return, expect it to take up to six weeks. You are advised to contact the IRS to learn the status about your paper filed return.
Filing electronically could drastically reduce that time; the refund could take fewer than two weeks, and even fewer days if you elect to have the refund transferred to your bank via direct deposit.
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Tax Law Changes
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Tax law changes that went into effect for the beginning of the 2011 tax season will affect paper and electronic filers. This is because the IRS needs time to reprogram its processing systems for the tax changes, which are part of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.
One of the larger groups affected by the changes are those who itemize deductions on Form 1040 Schedule A. Also affected are those claiming any of the following: the state and local sales tax deduction, the higher education tuition and fees deduction and the educator expenses deduction.
Filing Notes
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Regardless of which method you choose to file your returns, keep in mind the deadline date: it won't be on April 15 in 2011. Because of a federal holiday called Emancipation Day, you will have until April 18 to file in 2011.
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References
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