Myth #5: There Are No Benefits to e-Filing

"I don't trust computers and there are no good reasons to e-file my tax return."

Easy does it, technophobe. Many taxpayers mistakenly believe that there are no good reasons to e-file their tax returns. This myth may be based on mistrust of technology or any of the downsides to e-filing. In actuality, however, there are numerous benefits to e-filing your tax return.

First, if you e-file you stand to receive your tax refund sooner than if you paper file. The IRS usually sends out refund checks within three weeks of receipt, and direct deposit payments are made even faster.

E-filing your tax return also provides greater accuracy than filing a paper tax return. According to government statistics, electronically filed tax returns have fewer taxpayer and IRS processing errors than paper returns. 80 million people filed their taxes electronically in 2007, so you can rest assured that the e-filing systems work.

When you e-file, your tax return will never be "lost in the mail". And there will be no more standing in long lines at the post office when you e-file.

To be sure, there are certain costs and drawbacks associated with e-filing. In order to electronically file you tax return, you have to purchase your own e-filing software or use an authorized e-filing service, unless you qualify for free e-filing. E-filing is free if you make $56,000 or less a year. If your income tax return is overly complex, some e-filing solutions may not be recommended. Finally, if you are not comfortable using a computer, e-filing may not be right for you.

Related Resources:
IRS E-File for Individuals
IRS e-file for Individual Taxpayers: File Taxes Online

For a complete list of tax misconceptions, read the IRS publication, Truth About Frivolous Tax Arguments.