Why should you file taxes electronically? There are many benefits to filing a tax return electronically in 2021.
While it would come to mind that you need to pay for e-filing, it isn’t oftentimes the case for many Americans. You may be qualified to file taxes electronically if you earn less than the e-file provider’s requirements.
For example, many of the IRS-approved e-file providers allows taxpayers with AGI of less than $69,000 to submit their taxes electronically. The income limit isn’t $69,000 for all e-file providers though. Some require less and but the highest is $69,000. With that said, if you earn more than this, you will need to pay for filing taxes electronically.
As to why you should file a tax return electronically, there are many reasons. The obvious one being how long the IRS takes to process your return.
Earlier Refund for Electronically Submitted Tax Returns
Generally, the IRS processes tax returns within 21 days, thus, you will get your refund in less than a month. Compared to mailing a return to the IRS, this is advantageously shorter. For mailed tax returns, the IRS may take up to 8 weeks to process. This will surely result in your refund being issued to you at a later date if you were to file an electronic return.
There are other reasons as well than just the time it takes for the IRS. Your tax return is less prone to errors and leaving a few parts empty. The tax software will notify you if there is any part of your tax return that is left blank but should have something.
In addition to this, some of the tax software in the market allows taxpayers to search for the deductions and credits they are eligible to claim. Since the IRS doesn’t tell taxpayers which deductions and credits they can claim, this is a nice feature to have.
Given any tax software gets better and better over the years, you can almost think of them as filing a tax professional to do your taxes. Regardless of the amount of your income and the way you earn, filing taxes electronically comes with plenty of perks and it is definitely worth paying if you have to.