by Lisa Morris
Put away your pencil, eraser and the headache medicine. Just because you've filed your income tax return on paper since the dawn of time doesn't mean you can't break the habit. Nearly 100 million taxpayers — or about 70 percent — filed their taxes electronically last year. Isn't it time you joined the majority? Here are 10 tips to help you e-file your 2010 income tax return.
Sign up for direct deposit. Sign up for direct deposit when you e-file and you'll get your refund as soon as 10 days later. You also have the option of having your refund deposited into as many as three different accounts. You can also use your refund to buy a U.S. Savings Bond.
File early, but pay later. Even if you owe the IRS this year, e-filing still benefits you. You can file your income tax return as soon as you've got all your tax documents and schedule the electronic payment for April 18 (the IRS extended the deadline because April 15 is a holiday). You also have the option to pay your income tax by credit card or mail a check with a payment voucher by the deadline.
Use automatic fact-checking. E-file through the IRS site for your best chance at an error-free return. Returns filed through www.irs.gov have an error rate of less than one percent compared to 20 percent for paper returns. If the IRS does detect an error on an e-filed return, it sends you an error message so you can quickly correct and resubmit the return. With paper returns, this process can take weeks or months.
Hire a pro. Don't want to e-file your tax return yourself? Find a qualified tax preparer through the IRS' e-file service. Just enter your zip code and you get a list of IRS authorized e-file providers in your area.
Get fast confirmation. When you e-file, you'll receive confirmation within 48 hours that your income tax return was received. Mailed returns can take much longer.
Check out free filing. E-file for free through the IRS' Free File service. Your adjusted gross income must be $58,000 or less in 2010 to get the free service.
Get an extension. You can e-file for an extension before April 18, and then use it again when you're ready to file your return. The service is available through October 15.
E-sign it. To e-file your tax return, you have to sign it electronically with a five-digit PIN (or you can retrieve your PIN if you know your adjusted gross income from your 2009 tax return). The IRS' new online application, Electronic Filing PIN Help, provides you with a replacement PIN if you can't locate your prior year AGI or PIN.
File securely. E-filing through the IRS site is secure because your return is delivered through an encrypted transmission system.
File eco-friendly. You'll do yourself and the environment a favor when you e-file your tax return.
Lisa Morris is a freelance writer and experienced tax preparer who has been e-filing her taxes for as long as she can remember.
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