How to E-File Income Tax Returns

Every year millions of people across the country decide to go 'paperless' and send in their income tax returns through electronic filing. This saves time and money for both the individual filing their taxes and the IRS who receives the tax returns instantly and works on them through a computer program. 

How to e-file income tax returns is a question millions of people as each year as tax time comes and goes. Electronic or 'paperless' income tax filing saves individuals time and money, plus this is an eco-friendly way of filing taxes to help the environment by saving thousands and thousands of trees that would otherwise make the forms.

There are a few steps to e-file income tax returns and if they are followed exactly, an individual will have a successful income tax return filed with the IRS. This also means a refund check will be deposited into the filer's bank account faster than paper filing.

1. Collect all of your receipts and tax information. You will need the previous year's tax information, your social security number and all forms from your employer. If you are self-employed, gather up all your financial paperwork. It is better to have too much information then not enough. This will save you from having to log out of the tax-filing program and hunt for more tax documents. 


2. Pick an IRS approved online service you are comfortable using. There are almost 30 IRS approved online programs for filing taxes. Most of the online tax services will file both the federal and state income tax returns.


3. Start your online income tax return with a new user account.


4. Choose a login id and password that you will be able to remember next tax season.


5. Answer several questions about dependents, marital status, employer, income and credits or deductions you will be claiming. Several of the answers will be located on the W-2 form from an employer or a 1099 form if you are self employed.


6. Choose 'yes' to the question of "Do you want to file your state income tax return" when prompted for an answer. The information from the federal tax return, which is first, will populate the answer boxes for the state return.


7. Fill out the information regarding your bank account for direct deposit of your tax return. Most of the e-filing systems only take electronic refunds.


8. Create a pin number. This is a four to six digit number that acts as your electronic signature. It should be a number only you will know and can use again next year.


9. Review your tax return. If everything is correct, file the return and wait for the confirmation that the IRS received your income tax return. This could be a small box on the screen or an email stating they received it.