Why E-file?

Forget that paper tax return! Electronic filing (efiling), online tax preparation and online payment of taxes are getting more popular every year. If you've wondered about efiling, here are the answers to frequently asked questions, including why efiling is a good idea, which states let you efile, how much efiling costs, and how soon you'll receive your refund.

Why e-file?

Here are some reasons why electronic filing makes sense for most taxpayers:

Fewer mistakes

Using tax software substantially reduces errors. According to the IRS, 20 percent of income tax returns prepared on paper have mistakes, such as missing information or taxes calculated using the wrong tax tables; half of those errors cause folks to overpay their taxes. But only about 1 percent of returns prepared electronically contain errors. If there is a mistake on your return, the IRS can detect it and send back an error report in as few as 48 hours so that you can quickly fix the problem.

Speedier preparation

You can get the job done a lot faster if you tackle it with your computer. Filing from your computer saves you the trip to the post office, too.

Faster refunds

If you send in your return by mail, you can expect to wait up to six weeks for your refund. Efiling your return and electing to have your refund deposited directly into your bank account is the fastest way to get your tax refund. Usually about 2 weeks.

How will I know that the IRS has received my tax return?

Ever worry that your return might get lost in the mail? Efiling lets you rest easy. When you send a return by mail, you have no way of knowing if the IRS received your return unless you pay extra for certified mail with a return receipt. It could take weeks for you to get that receipt.

But if you file electronically, the IRS notifies within 48 hours that it has received your return.

Can I avoid having to file anything on paper?

You can save more trees than ever using efile. You can now file a completely paperless return, right down to your signature. You can use a self-selected Personal Identification Number (PIN) just as you would at a bank ATM. The PIN is your electronic signature. However, you will still need to sign the efile authorization form.

Can I efile my state tax return, too?

The following 37 states and the District of Columbia allow you to e-file your state return at the same time you file your federal tax return online. This is called the Federal/State E-file for Taxpayers program. Essentially, you send both returns to the IRS, and the IRS electronically forwards your state return to the tax authority in your state.

Alabama Kansas North Dakota

Arizona Kentucky Ohio

Arkansas Louisiana Oklahoma

Colorado Maryland Oregon

Connecticut Michigan Pennsylvania

Delaware Mississippi Rhode Island

District of Columbia Missouri South Carolina

Georgia Montana Utah

Hawaii Nebraska Vermont

Idaho New Jersey Virginia

Illinois New Mexico West Virginia

Indiana New York Wisconsin

Iowa North Carolina

A few states allow you to file your state return directly, including California, Maine, Massachusetts and Minnesota.

Will my tax return data be kept confidential?

Yes. You've got no worries about data falling into the wrong hands or being misused because the IRS, the states and tax preparers are under the same rules of confidentiality for efiled returns as they are for paper returns. They may not reveal or discuss any information contained in your return unless you authorize them to do so. Tax software developers also must operate under these rules, and they must protect customer confidentiality during the efiling process. To ensure the integrity of your electronically filed tax return, always use only proven, high-quality efiling software.

Can I efile if I owe money?

Yes. You can still pay with a check sent via snail mail if you prefer. As long as the check is in the mail by the due date of your return the payment is considered to be on time. Or you can advise the IRS to debit your checking or savings account for the amount due. No matter when you file your return, you can tell the IRS not to tap your account until the due date.

How much does it cost to efile my return electronically?

Efiling is included in the tax preparation fee.

If I'm getting a tax refund, when can I expect to receive it?

E-filing will deliver your tax refund much faster than traditional mail. Taxpayers using TurboTax and electing to have their refunds deposited directly into their bank accounts will get their fastest refunds possible.

Refunds from tax returns filed on paper can take up to six weeks, depending on the time of year you file your tax return.

Visit our Refund page for tracking information.