Electronic filing also helps prevent errors. Tax software does the calculations, points out common errors, and tells taxpayers what information is missing. It can also help taxpayers apply for valuable credits and deductions. Eligible taxpayers can use IRS Free File to file their return electronically for free.
Your refund is reduced or you owe more taxes. If you don't correct your return and payment before the tax deadline, you may owe penalties and interest. By filing your taxes electronically, your tax return is less likely to be lost in transit, damaged, or run into any other problem that could cause you a big headache. In addition, if you file your return electronically and opt for direct deposit, it is estimated that your tax refund will appear in your checking account within 21 days.
When you send it by mail, it can take several weeks before your payment is processed and sent. Unlimited cash rewards of 2% on purchases As the April 18 deadline approaches, the anxiety of being late could also lead some to rush and make less-than-ideal decisions regarding their taxes. If you're not sure about filing your taxes this year, it may be best to use tax software or get help from a certified tax professional, just in case. If you're not married, for example, you can file your return as single, but you may qualify for more favorable tax rates and other tax benefits if you meet the requirements to be a qualified head of household or widower with a dependent child.
In my years of preparing tax returns of all kinds, I've come up with a list of common mistakes that can be avoided with a little more time and attention. In addition, your previous tax returns will be useful to you when you file future tax returns or need to file an amended return.