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e-file Tax Returns Under TCJA

e-file Tax Returns Under TCJA

The TCJA(Tax Cuts and Jobs Act) may have brought major changes to how income is taxed, but the choice of application remains the same. Taxpayers can still mail or e-file their tax returns and choose to receive a refund by direct deposit. In addition, you always have the right choice to have your tax return prepared by a tax specialist or to work on it yourself.


What is E-File?

E-filing is the process of filing tax returns over the Internet using tax preparation software that has been pre-approved by the appropriate taxing authority, such as the United States Internal Revenue Service (IRS).

The convenience and efficiency of electronic storage have made it increasingly popular in recent years. The Internal Revenue Service says e-filing speeds up tax refunds and helps avoid delays.


E-file (Electronic Filing) Options

Taxpayers can file their returns directly to the IRS website by submitting forms that can be completed using the IRS Free File. Those with an adjusted gross income in 2021 of $73,000 or less can use the Free File site to access free e-filing services from IRS software partners, with guided tax preparation, including a Spanish language option.

A taxpayer has the option of e-filing the return using any tax preparation software that has e-filing capabilities or using the services of tax professionals using similar software. 


What happens when you e-file?

The tax office can save a lot of time and money with e-filing because the tax information is transferred directly to the agency's computer. Significantly reduces the risk of typing and typing errors. For taxpayers whose adjusted gross income for the fiscal year is $66,000 or less, tax returns can be filed directly with the Internal Revenue Service (IRS) through the IRS Free File. Although the IRS has worked with many businesses to provide electronic filing to individuals and businesses, it does not endorse any specific electronic filing software for IRS e-file.

Taxpayers have the option of filing tax returns using tax filing software with electronic filing capabilities or using the services of tax professionals who also use the software to file tax returns for an individual or business. The IRS advises people to e-file themselves only if they are confident and knowledgeable about doing their own taxes.


The advantages of e-filing

E-filing saves the revenue agency time and money by transmitting the return data directly to their computers, greatly reducing data entry errors. The IRS says that electronic filing with tax preparation software also helps reduce miscalculations and missing taxpayer entries.

According to the IRS, most taxpayers who file their returns electronically and provide direct deposit information can expect to receive refunds due within 21 days if there are no issues with their return.

Another advantage of electronic filing is that the tax filer receives a notification of acceptance or refusal within 48 hours, generally within 24 hours of filing the return. Acceptance is proof that the return and other documents have been received and are in the system, while a denial notifies the taxpayer that the IRS has not accepted the return. The rejection notice will include information about what needs to be corrected to be acceptable. If you filed your tax return electronically before the tax due date but were rejected after that date, you have a grace period of five days to correct and resubmit your return. After that, you must submit a correct paper return.


Limits of e-filing

The IRS only recommends e-filing to taxpayers who feel comfortable filing their tax returns electronically without the assistance of professional software or tax preparer.

The IRS free file is only available for the recent tax years. Returns from previous years, which are two years old, can still be filed electronically by registered tax preparers.

The IRS accepts electronically filed returns for the most recent year before the November due date, which is usually announced in October, subject to the same timeliness rules as paper returns.

An e-filing may be rejected due to errors in entering a Social Security or Payer ID number, a missing form, or an incorrect name. Usually, returns can be filed electronically after these errors are corrected, the IRS says. If all else fails and the deadline is approaching, file a paper return.


Where can you file electronically?

You can file electronically through the IRS free filing site. Although millions of taxpayers sought out a tax professional, many people still prefer to file their own taxes. You still have these options even after TCJA, so whichever method you choose, you will still be able to file your fees electronically.


Last Words

Consult your local tax professional for a faster, less stressful process if you're ready to get started with your taxes but don't know-how. If you're a do-it-yourself individual and enjoy the challenge of preparing tax returns, then go ahead and e-filing your returns.


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