Electronic Filing Tips

When filing electronically, there are some things to consider that may not be entirely intuitive. If you are thinking of e-filing, consider the following.

Double-Check for Accuracy

All tax filings are checked for things like common math errors. They are also checked for omissions. Common omissions include not entering your Social Security Number, names, and not carrying numbers forward from forms and schedules to the appropriate places. Other common errors are misspellings of names. While these things seem very simple and basic, they are among the most common errors that can get your electronic filing returned by the IRS.

E-Filing Fees

Many tax preparation services charge a fee for electronically submitting your tax forms. If you will be preparing taxes for others, consider whether you want to charge for this service. If you do, make sure to make it clear to customers what the fees will be if they choose to file electronically. If a tax service prepares state tax as well as federal tax, they may also charge for filing those forms electronically as well. Whether you are using a tax service or running one, just make sure that all fees are understood up front to avoid bad feelings.

IRS Free File

The IRS and the tax software industry offer free or discounted preparation of tax forms and electronic filing for some taxpayers. To see if you are eligible, go to the IRS' Web Site. If you require additional help, you may want to consult a professional tax preparer, but beware of fees. Even for phone consulting help or online chat, some services may charge $20 or more to answer questions. Any time that you deal with an income tax professional, be clear on what their fees are. If you prepare taxes professionally, also make clients aware of any fees that they may incur for various kinds of consulting, whether in person or if done by phone or internet correspondence.

Collect Information Before E-Filing

Whether you are filing electronically or traditionally, you will need to get your records, receipts, W-2 or 1099 forms, and so on. You will need these documents and any receipts that you may be need if you are itemized. Organizing receipts where necessary will make it easier to total them up as well.

Keep Physical Records

Even if you are filing electronically, you still need to keep receipts for various deductions that you may be claiming and W-2's and 1099 forms that you will need to know what your total taxable income is.

Audits

Filing electronically neither increases nor reduces your likelihood of being audited. The main benefit that you get through filing electronically is merely that as long as your figures add up and there are no errors or omissions, you typically will get your tax forms processed more quickly.