| There are many benefits when you consider e-filing | | | | is not very complicated at all you can usually do it on |
| for your tax. Let's do a quick recap on some of the | | | | your own, either using the traditional pencil and pen |
| benefits. | | | | method, or filing an online tax return. |
| No paperwork. | | | | Calculating earned credit income (EIC). |
| This is one of the main benefits for e-filing. When you | | | | When filing for tax, you may be unaware of some tax |
| e-file, there is no need to work with pieces and pieces | | | | policies. This is where the system can help. For |
| of forms. These forms usually arrive in the mail. But | | | | example, EIC is for people who are working but are |
| because they are delivered by mail, they may arrive | | | | earning low wages. It reduces the amount of tax that |
| late, or they may get lost. This will hinder the filing | | | | an individual owes. Currently, this amount stands at |
| process and may even cause you to file late. When | | | | $35,458, but this may change. The amount is also |
| you e-file, you avoid all those problems, hence saving | | | | dependent on various conditions. For instance, if you do |
| yourself lots of time. | | | | not have any children, the ceiling comes down to |
| Minimal error. | | | | $11,750. |
| Another great benefit for e-filing is that there is very | | | | The problem with such policies is that they may |
| little room for error. We shall look at calculating earned | | | | change. And when you paper file, you have to find out |
| income credit (EIC) later as an example. But for now, | | | | what those changes are, and make manual |
| it's good enough to be reminded that humans introduce | | | | calculations before submission. This, again, may result in |
| errors when filing taxes. | | | | errors. If you visit the IRS website, you will find that |
| When you use an online system to e-file, the system | | | | there are penalties for submitting erroneous |
| will have built in handling that will prevent errors from | | | | information, even though you are not aware of it. For |
| being introduced accidentally. For example, if there are | | | | instance, if the mistake was due to recklessness, you |
| some required fields that are missing, the system will | | | | could be denied EIC for up to 2 years. Therefore, it is |
| prompt you immediately and will not allow the | | | | always better to e-file. |
| submission to go through. | | | | When you e-file, the system automatically inform you |
| Greater convenience. | | | | of the policies, and even calculate the numbers |
| Compared to traditional paper filing, it is much more | | | | automatically for you. In other words, the system will let |
| convenient to e-file. You can e-file any time you like - | | | | you know whether you qualify for EIC or not, based |
| when you wake up or in the middle of the night. You | | | | on the numbers that you have provided. That way, |
| can even save the draft, and continue the e-filing | | | | you never have to worry about errors and you can |
| process at a later date if you are missing some | | | | find out whether you qualify for a tax credit or not. |
| numbers. If you are preparing a federal tax return that | | | | |