File Taxes Electronically
For most people, tax season creates a certain anxiety. Many believe taxes are a real pain, and these beliefs only add to the stress of filing federal taxes. This is no longer the case. Contrary to popular belief, filing federal income taxes is now hassle-free, thanks to electronic filing services provided by the Internal Revenue Service (IRS) and a group of computer tax software specialists. In this article, we will take a look at how to file taxes electronically with the IRS.
Regular wage-earning individuals can file their federal income taxes with the new Free File program. Free file is a collaborative effort between the IRS and Free File Alliance LLC – a group of private sector software companies which specialize in tax software. These companies offer low-cost and free methods for individuals to file their taxes online. Using the Free File method, individuals can either fill out copies of the appropriate tax forms online, or use special time-saving tax software from one of the Free File Alliance providers. When using the Free File fillable forms, there are no income limitations; anybody from the lowliest wage earner to Fortune 500 executives are allowed to use this method. The free forms look exactly like blank paper IRS forms. Individuals can choose between the 1040, 1040 A and 1040EZ forms. The online forms are filled out exactly like the paper ones, but can be submitted over the internet, instead of having to be mailed in. This saves the taxpayer time – not to mention a postage stamp. Alternately, individuals can choose from a number of different computer tax software programs to provide step-by-step help. These programs ask the individual a series of simple questions, then perform all the calculations and fill out the appropriate tax form automatically. Free tax preparation software are available along with e-file for those whose adjusted gross income (AGI) is less than $57,000.
The businesses, the self-employed, and other tax paying entities may use IRS e-file. Currently, the e-file system can be used to file taxes for coporations, partnershipts, employment taxes, information returns, estates, and trusts. These e-file service may not necessarily be free to the taxpayer, however, the time and hassle saved by filing the taxes electronically typically offsets the costs.
For those who owe money when filing their taxes, there are a number of convenient ways to pay the IRS. First, a credit or debit card can be used to pay over the phone, or over the internet. Second, a direct deposit can be made online from just about any checking account. Finally, those old-fashioned types can mail in a paper check.
In this article, we have explored the options to File Taxes Electronically.