3 perks of using online tax preparation services

Don’t let filing your taxes become a chore every year. When you file your taxes online, you’ll find easy ways to cut time and hopefully boost your return.

Filing electronically has grown increasingly popular over the past few years. More than 90% of U.S. taxpayers filed their taxes online last year, receiving an average refund of $3,039, International Revenue Service (IRS) data shows. The IRS reports 47% of e-filings were self-prepared.

Choosing to e-file, however, doesn’t mean you have to go through the process alone. Online tax preparation software sites, like TurboTax, allow taxpayers to choose between a variety of versions — from basic to premier and others that include different features. A majority of taxpayers (53%, according to the IRS) who filed online last year sought professional help.

If you haven’t filed your taxes yet, don’t delay. There are plenty of benefits to filing your taxes early. It takes seconds to create an account on TurboTax, which has received more than 155,200 customer reviews rating the service 4.6 out of 5 stars. Get started today!

Why should you file your taxes online?

As you can see, the majority of Americans opt to e-file, and the International Revenue Service even encourages it. 

“IRS encourages taxpayers to file their tax returns electronically, which saves IRS money and allows taxpayers to get their refunds faster,” the U.S. Government Accountability Office explained in a blog post last year while highlighting the IRS Free File program.

Here are three reasons why taxpayers decide to file their taxes online:

1. Convenience
2. Speed
3. Price

Convenience

More Americans are choosing to file electronically purely out of convenience. Many tax preparation services can connect you to a tax professional who can provide advice or review your return virtually.

“Filing electronically cuts out the mail time, and including direct deposit information on an electronically submitted form provides a convenient and secure way to receive refunds faster,” the IRS says.

Efile.com agrees, highlighting convenience and accuracy as one of the top perks of filing electronically.

“Whether you use an online tax preparation service (compare popular services here) or use the IRS filing program, e-filing is the more convenient option. Instead of tackling mountains of paperwork, e-filing offers easy, step-by-step instructions and prompts,” Efile.com states online. Learn more about filing your taxes electronically on Efile.com now!

Speed

Are you looking to get your tax refund as soon as possible? If so, e-filing can help.

If you decide to file on paper, you may end up waiting six weeks or more for the IRS to process your return, the IRS warns. “If you mail a paper Form 1040, U.S. Individual Income Tax ReturnPDF, it can take 6 to 8 weeks to process your return,” the IRS states on its website.

E-filers typically receive their tax refunds in less than 21 days, possibly even faster if they chose to get their funds back via direct deposit — a recommendation by the IRS. TurboTax can help you track your refund so you get updates from beginning to end. Get notified when your e-filing is complete, when the IRS accepts and approves your refund, and when it’s deposited into your account.

“Direct Deposit into a bank account is more secure because there is no check to get lost. And it takes the U.S. Treasury less time than issuing a paper check,” the IRS notes.

If you’ve been waiting for six weeks or more and you filed electronically then utilize the IRS’ Check My Refund tool to view your status. There are many reasons for potential delays. The IRS will usually reach out to you by mail to flag if there have been any issues with your information.

Price

There are plenty of free and low-cost filing options available to taxpayers — just make sure to do your research. 

“Over the past nine years, Americans filed approximately 113 million tax returns completely free of charge using TurboTax, more than all other tax prep software companies combined,” TurboTax claims on its website, pointing users to its free service. 

TurboTax’s live-assisted basic offer is a free version that allows users to file for free with an option of getting expert advice and a final review before they file. Just note that this is a limited-time offer, ending on March 21. Learn more about the free version here.

Ultimately, the best way to cut costs is by comparing tax preparation offerings and services to determine which program fits your needs for less. Use the table below to get started.