Tax returns filed online may be more accurate than paper returns. Filing electronically assures that the return you submit to the IRS contains all essential information necessary for processing; if something is missing or incorrect, the return will be immediately rejected. You can correct the error right away and resubmit the return.
E-filing, as it’s known, is especially appealing if you are due a refund. Refunds on paper returns take an average of six to eight weeks and returns filed around April 15th may take even longer. By contrast, refunds on e-filed returns typically are received as quickly as two weeks from the date the return is accepted by the IRS.
Refunds can be deposited directly into a bank account you indicate. On the other hand, payments can be made from an account you specify or they can be made by credit card.
As for costs, filing online usually beats paying a tax preparer. Most online services charge no more than $30 and you don’t pay until the end of the process, when you’re satisfied with your return. Some online filing services even waive their tax preparation fees altogether if you agree to allow ads to appear on your screen.