E-filing, or electronically filing, your federal and state tax returns is a smart choice for several reasons. Most tax preparers are now required to e-file their clients’ tax returns, and for good reason. E-filing is fast, safe, convenient, and virtually error-free. Here’s why you should consider e-filing and choosing direct deposit:
Benefits of E-Filing:
Speed: E-filing gets your tax return to the IRS quickly, reducing the processing time.
Safety: It’s a secure way to send your sensitive information without the risk of it getting lost in the mail.
Convenience: You can e-file from the comfort of your home, avoiding trips to the post office.
Accuracy: E-filing software checks for common errors, reducing the chance of mistakes that can delay your refund.
Combine E-Filing with Direct Deposit:
Fastest Refund: The quickest way to get your federal and state refund is to e-file and choose direct deposit. Your refund will go directly into your bank account, whether it’s a checking or savings account.
No Lost Checks: You don’t have to worry about your check getting lost in the mail.
Direct Access: You don’t need to go to the bank to deposit your refund check.
Additional Options:
Split Your Refund: You can split your refund into up to three financial accounts, including a bank or Individual Retirement Account (IRA). You can also use part of your refund to purchase up to $5,000 in U.S. Series I Savings Bonds using Form 8888, Allocation of Refund Including Savings Bond Purchases.
I Bonds: Series I savings bonds, called “I Bonds,” are issued by the U.S. Treasury and are a safe investment. I Bonds are inflation-protected because their interest rate adjusts to inflation every 6 months. The interest income from I Bonds is tax-deferred until you cash them out, and there’s no state income tax—only federal income tax is owed.
Direct Deposit for Paper Filers: Even if you file a paper tax return, you can still opt for direct deposit. Just make sure to enter the correct bank account and routing number.
Paying the IRS: If you owe the IRS, you can authorize them to electronically withdraw the money directly from your bank account.
Check Your Refund Status: You can check the status of your refund on the IRS website. You’ll need the primary Social Security Number (SSN) on the return, the filing status, and the exact refund amount.
The IRS accepts e-file of individual and business tax returns through their IRS Authorized e-file Providers.