Top 5 Reasons You Should E-file Your Tax Return This Year

The IRS began accepting tax returns last Wednesday, January 30th and so the tax season has begun. According to the IRS, over 100 million taxpayers opted to file electronically last year. Of course, many of you are still tempted to stick to old traditions and file by mail but here are five reasons why you should e-file your tax returns this year:

Number 5: You won't have to worry about your return getting lost in the mail
While snail mail is generally a reliable form of communication, there is always that chance that your return would somehow not make it to the IRS. With E-file, you will be able to get IRS confirmation that your return was received within seconds. No more worrying whether your tax return was received or not!

Number 4: You save the environment
Filing tax returns by traditional methods requires lots of paperwork. E-filing significantly reduces, if not eliminates, the use of paper. In 2009, 47.9 million people filed individual tax returns by paper. Assuming each return is 3 pages and each pine tree produces 80,500 sheets of paper, had these people opted to e-file instead, we would have saved 1,785 pine trees!

Number 3: Your return will be more accurate
When you e-file, you typically use software that has the capability to double check your entries and your math so that your tax return would be as accurate as possible.

Number 2: You will receive your refund faster
According to the IRS, taxpayers who e-file and choose direct deposit receive their refunds within 10 days from when the IRS accepted the tax return. Compare this to paper filing which may take six to eight weeks! Yikes!

Number 1: You will be able to take advantage of the FAFSA Data Retrieval Tool much earlier 

The Data Retrieval tool allows applicants who have already filed their tax return to prefill the answers to some questions on the FAFSA by transferring data from their federal tax returns. This feature is available as quickly as one to two weeks if you file your return electronically but not until at least six to eight (!) weeks if you filed by paper. Filing electronically will save you time when completing your FAFSA this year. It will also speed up your award processing. For example, if the Department of Education chooses you for verification the Financial Aid Office should not have to ask for any income information. Otherwise, you will be required to order an official tax transcript from the IRS – guess what – that means more waiting and more work! Save time and effort by e-filing!