However, how safe is it to file your tax returns online? Learn about the security measures used to protect your information and the benefits of filing online.
Is It Safe To File Your Tax Returns Online?
The short answer is yes, filing online is very safe for submitting your tax returns. The chances are extremely remote that your income tax data could be stolen while you file online. Filing online is more secure than mailing a tax return via snail mail because the data in an online tax return is specially encrypted for extra security. Encryption prevents any access to data as it moves between your tax software and the IRS or state tax agency. Always take precautions in protecting your sensitive information. Monitor your credit reports for unusual activity, and freeze your credit if necessary.
Tax Software and Tax Preparers
If you still have concerns about filing your tax return online, visit the website of the tax software you want to use and read its privacy policy. Search the support pages to find details on the technology and security measures the company uses. The tax software site should guarantee that it uses the most secure technology available. If you are considering filing a state tax return electronically, be sure the tax software information includes the same security for state tax agencies. Most of the popular tax software applications have encryption and securely transmit your data. If you decide to hire someone to prepare and file your taxes electronically, make sure they have the necessary IRS authorization to transmit the information. The IRS maintains a list of current authorized IRS online filing providers. You may search this list by zip code and state.
Benefits of Filing Online
Filing online is more than a way to avoid filling out forms by hand. Aside from providing a safe and secure transfer of your data to the IRS and your state’s taxing authority, it offers several other benefits for you.
Easy and Accurate Calculations
When you file online, you’ll enter your tax information into online software that does the math for you. It also walks you through the process of completing your return in a straightforward manner, and you can save your work to finish it later if needed. Many tax software packages also ask a series of questions designed to walk you through possible tax credits and deductions. These interviews are helpful in securing you the largest return possible or, if you owe, reducing the amount of taxes due.
Works on Your Schedule
Online returns can be filed at any time of day or night. If you haven’t gotten around to doing your taxes until the last minute, you can do them late at night or in the early morning hours. You can also have your tax preparer send your return electronically to submit your tax return information as soon as the work is finished.
Get a Faster Refund
You’ll often receive your refund sooner if you file online than if you filed by mail. To speed up your return, you can choose to have your funds sent to one, two, or three bank accounts via automatic deposit.
File for Free (In Some Cases)
In most cases, you can file your federal return at no charge by using IRS Free File. If your adjusted gross income (AGI) is under $73,000, you can use software to file your taxes for free.
Several Payment Options
If you owe money for your taxes, you can file online at any point up to the filing deadline (which is normally mid-April) and set up an automatic payment plan with the IRS for little or no cost. You can also pay your taxes with a debit or credit card for a small fee. Or, you can explore other payment options listed on IRS.gov’s payment options page.
Won’t Get Lost in the Mail
Your tax return can get lost in the mail, but a return filed online doesn’t have that problem. File electronically, and you get quick confirmation that your tax return has been submitted successfully, as well as confirmation that the IRS has accepted it.
Know When Your Refund Will Be Deposited
Your tax software can usually tell you when your refund is being processed and when to expect your refund to arrive.
Accuracy Guarantees
Prepare your tax return on paper, and you may make an error in calculations or when transferring numbers to your tax forms. Income tax software is required to offer the option to file online. The software will do all the tax calculations, even double-checking the numbers prior to submitting the return and guaranteeing accuracy.
Lower Chance of Error
When your tax return is sent by mail, someone at the IRS has to enter or scan your tax information into its system. Keying errors and technical problems can interfere with getting your taxes filed correctly. When you file online, your data goes directly into the IRS system, bypassing the chance for human error (unless you provided incorrect information while filling out your return online).
