Anna-Louise Jackson, Bankrate.com
It is now the norm for Americans to file their taxes online. The IRS reports that more than 90% of individual tax returns were electronically funded in 2023, the most recent data available. Even most professional tax preparers are required to electronically file returns on behalf of their clients.
When it comes to filing your own taxes, there are several different options for filing online, ranging from a completely do-it-yourself process to guided experiences offered by most tax software companies.
How to file taxes online: 4 options
Most of us are going to file our taxes online no matter what, and there are benefits to doing so. Filing online will speed up the time it takes to receive your refund. The IRS reports that over 90% of tax refunds are sent within 21 days.
The good news is that many taxpayers are eligible for free online filing. This includes access to free tax software to guide you through the preparation of your tax return.
Here are four options to consider for e-filing your return.
1. IRS fillable forms
Once you’re comfortable playing the role of accountant, you can access fillable forms on the IRS website to prepare your own taxes. All forms and associated worksheets include instructions to guide you through the process. Free forms will be available to complete your 2025 tax return on January 27, 2025. This is the first day of the 2025 tax season and the date the IRS begins accepting 2024 tax returns.
If you’ve ever filed your taxes manually using the original paper forms, this is the online equivalent of that process. Depending on how simple or complex your tax situation is, filling out these forms may be easy.
You will need to take steps to prepare the form with your tax documents. For example, a W-2 from your employer shows your income and withheld taxes, and you submit everything yourself to the IRS website. If you have the money, you can pay directly on the IRS website.
A major drawback of the IRS Fillable Forms program is that it does not automatically transfer information from your federal tax return to your state tax return. The IRS does not support online filing of state tax returns with this option.
2. IRS free file
The IRS offers another option to file your taxes online for free, but this time guided by tax software. With Free File, the IRS works in conjunction with an online tax preparation company to fill out everything and file online. You can choose one of the tax software companies affiliated with the IRS, navigate some simple questions, do the calculations and complete your return with our online service.
As the name suggests, this tax increase option is free, but there are some catches to be aware of.
– To qualify for free file, taxpayers must have adjusted gross income (AGI) of $84,000 or less for the 2024 tax year. This applies to all filing statuses, including single filers and those jointly married.
– Some of the IRS’s trusted tax partners have additional requirements that taxpayers must meet to qualify for free file, such as living in certain U.S. states.
– Some of the IRS’s tax software partners include free state tax returns, while others may charge additional fees for state returns.
Free filing is currently open for the 2024 tax season. When starting the process, you must go through the IRS website (do not go directly to the tax software company’s website). On the IRS site, you can navigate through pages to browse the range of tax software companies that are IRS partners, or use simple tools to find an IRS partner to meet your specific tax needs.
3. IRS Direct File
In addition to fillable forms and free filing, the IRS also offers direct filing. This is essentially a proprietary version of online tax software.
Direct File launched during the 2024 tax season, when taxpayers were filing 2023 tax returns, and those who used the program at that time were enthusiastic, with research showing that around 90% of users say their experience was excellent or above average. of 11,000 direct file users conducted by the General Services Administration.
One of the benefits of using a Direct File program is that if you have questions while filling out your tax return, you can get live support directly from the IRS via chat or phone. Also, filing your taxes with Direct File is completely free. Additionally, taxpayers in some states can automatically transfer data from their federal return to their state return.
However, there are also some drawbacks.
– Direct File only processes some deductions and credits. For example, Direct File does not support claiming deductible IRA contributions.
– Program is only available in 25 states.
– For some participating states, information cannot be easily transferred from a federal return to a state return. You need to go back into that information regarding your state’s return.
4. tax software program
Today’s tax software programs generally make preparing your taxes easier. Mainly because many of them use a question-and-answer format to explain the process.
The amount you spend to file your taxes online with the help of a tax service can vary widely depending on the software and your specific tax situation. Although tax software companies offer paid plans with more benefits, most major players offer versions that allow consumers with simple tax returns to file their federal taxes. Masu.
H&R Block, Turbotax, and Taxslayer are among the major players offering free online versions of popular software.
However, you must meet certain requirements to qualify, and the free version generally allows you to report basic W-2 income, take the standard deduction, and take the most common deductions such as the earned income tax credit and children’s income. Ideal for taxpayers who only claim credits. Tax deduction.
These free online tax options don’t cover all tax situations, so if your tax return becomes more complex, you may need to upgrade to a paid version. There are other unique considerations.
If you’re looking to pay a tax preparation provider to file your taxes, compare and contrast several options to see what features each plan includes and how much each one costs. Many tax software companies now offer upgraded features, from expert help to audit assistance, to ensure your returns are accurate. Service tiers are not always the same across providers, so you should first evaluate which features are most important. Check out Bestrate’s top picks for Best Tax Software of 2025.
Documents required to file taxes online
Before you start filling out your tax return, gather all the financial documents you need to submit. This includes W-2 forms you received from employers you worked for in 2024, and Form 1099s you received for work with clients as a self-employed person.
Other important tax forms you may receive include interest earned on bank accounts (1099-INT) (usually 1099s), student loan interest (1098-E), interest paid (1098) and Includes information mortgage statement and information showing. For contributions made to an IRA (5498) or Health Savings Account (8889). You can gather all the documents you need for your tax return as you move through the e-filing process, but gathering this information early will save you time later.
Please note that there is no need to collect information about charitable donations made in 2024. For tax year 2024, if you want to deduct your charitable contributions, you must itemize them. These days, the majority of taxpayers choose to claim the standard deduction rather than itemizing.
How to pay taxes online
How to file taxes online will determine how to pay your taxes if your completed 1040 form shows you owe money. Filing directly through the IRS allows you to pay your taxes directly to the IRS online. The IRS allows taxpayers to make payments from bank accounts or from debit cards, credit cards, or digital wallets, but processing fees apply to these options.
If you use an online tax service to prepare your taxes, once your forms are ready, you will be given instructions on how and where to submit them to the IRS if you owe taxes. As with paying directly to the IRS, you may be charged additional fees when paying by credit card.
There is no need to pay taxes online. Alternatively, you can mail your tax payment to the IRS. You must make a check, money order, or cashier’s check payable to the U.S. Treasury and make sure to include all the required information outlined by the IRS.
How online filing affects your tax refund
After you submit the form online, you will receive a notification from the IRS to let you know that your return was successfully received or if there was an error. If the IRS owes you a tax refund, you can check the status of your refund 24 hours after you e-file your return. You can also have IRS Direct deposit your refund directly into your bank account. This allows you to receive your money more quickly. Alternatively, the IRS can send you a check by mail.
when to pay taxes
The deadline to file your 2024 tax return is April 15, 2025. You have the option to request an extension if you need more time. If so, you have until October 15th to file your taxes. To qualify for an automatic six-month extension on your federal return, you must file Form 4868. Due date if you do not need extra time to have all the required documents. This may be especially attractive if you are expecting a tax refund.
How long it takes to receive your tax refund depends on a wide range of factors, but more than 90% of taxpayers receive their refund within 21 days.
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