Prepare Your Taxes Online And Save On Your Taxes

by Tax Mensch

Most of the Americans grade tax preparation and tax filing as one of the most hated chores to do! If you belong to this ever growing clan, then you can prepare taxes online because it simplifies the whole procedure.

As you already know, taxes are a necessity in our lives. They are a part of our lives that can’t be done away with. However paying online will help you to save valuable time and work.

Because the internet is becoming more and more popular, filing your taxes has become easier and easier nowadays. The days are gone for making your trips to the post office or tax office to search for the right forms and payment schedules; now the forms are mostly available in simple digital formats which make processing a snap.

Americans are now finding it useful to make use of advanced yet easy electronic filing or e-filing, an extremely popular filing method for making both federal as well as state return filing and payment.

The recent figures substantiate this fact. In the year 2003, electronic returns accounted for almost half of the total tax returns filed, of which 12 million returns were filed online and these figures are steadily growing by the day.

Electronic filing is faster and more efficient not just for the taxpayer but also for the local governments and the Internal Revenue agencies. While a 20% rejection is reported in paper tax returns only less than 1 percent online tax returns are rejected due to inaccuracy.

Since e-filed returns are so much more efficient and accurate, the IRS has received a mandate from congress to enable e-returns to be more than 80 percent.

Tax preparation software is increasingly being used by taxpayers to file their returns online. A survey conducted during 2002 by the NPD Group found that about 204 million dollars were spent on retail tax preparation products. The previous year showed that the previous year the figure was 180 million.

But the hitch is that you may have to upgrade your tax preparation software every year by adding the changes in tax codes, laws and forms, which might cost you extra.

If you file online though you will do away with these additional expenses. By the click of your mouse you can access the correct tax preparation service to file your return at the most economical rates. When you file online you also keep your personal information safe with the most stringent privacy terms and encrypted sites.

By filing electronically you also are helped to address you inquiries and get swift refunds, often on the same day! Thus you not only save money and time but are having a trusted tax service to support you.

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