10 Tips for Easy Filing of Online Tax Returns in USA

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CALIFORNIA (GaeaTimes.com) — Efiling is undoubtedly a great way for Tax Return. This is cheaper, faster and less troublesome than filing your Tax Return on paper. Efiling has a number of benefits. First and foremost, e-file guarantees almost 100% accuracy. An IRS data entry person does not need to type your tax return into the IRS computers. This implies that the IRS can process your tax return faster, and you don’t have to worry about clerical errors. Secondly, you receive confirmation as soon as your e-filed tax return is accepted by the IRS.

Online tax return preparation has been specifically designed to help you get through your tax return, fast, accurate and error-free. It is estimated by the IRS that over 70 million people file their taxes online every year. A Keyboard and a Mouse is all you need to file and prepare your tax return online. So if you haven’t already Now is the time to look into online income tax return preparation. You just might find a few new tax deductions and save your tax money. Here is our 10 tips for you to start with efiling.

1. Locate an IRS authorized efiling website.

This is one the most important things you should take care before efiling. Find an website authorized by the Internal Revenue Service (IRS). You might be thinking of how to recognize a service provider authorized by IRS. Its simple. Try to look for an “Authorized by IRS” logo. An unauthorized website is not permitted to publish IRS logo. So, if you find this logo, you are moving on the right path.

2.Prepare for eFiling.

Efiling is a convenient way for tax return. But before doing e-file, you must have sound knowledge about requisites. Don’t waste time, start hunting for your income reports. If you are unsure which reports you will be asked for, just collect all the income reports. During the process of e-filing you will be prompted for the necessary reports.

3.Work with a certified public accountant (CPA).

Even though the efiling wizard prompts you while efile, working with a CPA is always advantageous. If you have income coming from different sources or you fail to make out which figures to be included, a CPA will surely help you. A professional accountant will give you valuable advice before proceeding with the efile.

4.Don’t be late!

You are left with couple of days before the deadline comes up (April 15th, 2010). But don’t wait for the final minute. The advantage of starting early is that, if you find that you are missing some information, you can complete the process later on, simply by saving your efile as a draft. But remind that if you submit your tax return late, you will be liable for penalties.

5.Don’t file using a public computer.

Through efiling you are transferring some confidential information that needs security. So, you must look for a secured connection, rather than a public computer. Although cryptography (data encryption) is maintained during the process, who knows whether there are sniffing software installed in those systems.

6. Tax deductions

One of the popular tax tips that you should know about is tax deduction. Don’t overlook tax deductions that you qualify for. It is estimated that each year the American public loses millions of dollars from tax deductions that they were entitled to, but failed to claim. A professional tax preparer and a tax software program may assist you in this regard. Consult them to determine which deductions you qualify for.

7. Check for updated tax laws

Another important tips for tax return is that a taxpayer should check out the website of the Internal Revenue Service (IRS) or the website of their state tax department. This is to keep updated with changes or new tax laws implemented by IRS each year.

8. Taxpayers can file an extension deadline

Taxpayers need to be aware of what to do if they can’t pay the amount of taxes owed on federal or state tax returns. Very often taxpayers do not file a Tax Return, after realizing that they cant afford the amount due on their taxes. But this is the biggest mistake they commit. They do so out of the concept that not filing a return will prevent a refund from being owed on time. This worsen the situation. Taxpayers can file an extension deadline; however, the estimated amount of taxes owed is still due on the traditional tax deadline.

9. Don’t ignore the Internal Revenue Service

One thing you should keep in mind is that the Internal Revenue Service (IRS) impose a number of late fees and penalties on tax payments, not received in time. If you ignore (IRS) the number of or the amount of penalties will get increased.

10. For late efiling

Even if you cannot afford to pay your tax in full by April 15th, you should still file an extension. Because the late filing penalty of 5% per month of the balance due is waived as long as you file by October 15th. You’re still stuck with the late payment penalty of half of one percent per month plus an interest charge which is currently at four percent annual.

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