Florida Home

Bankrate.com
News & Advice Compare Rates Calculators
Rate Alerts  |  Glossary  |  Help
Mortgage Home
Equity
Auto CDs &
Investments
Retirement Checking &
Savings
Credit
Cards
Debt
Management
College
Finance
Taxes Personal
Finance

Bankrate's 2009 Tax Guide
Tips & tools
A tax tip a day plus an array of tax tools, terms and training will help you through filing and beyond.
 
Daily tax tip
TAX TIP No. 10
The many ways to electronically file your return
Page | 1 | 2 |



Hang up the phone
One form of electronic filing, however, is absent. Previously, the IRS allowed certain taxpayers, generally those who used the 1040EZ form, to file their returns via the telephone.

But as the IRS focus on e-filing and taxpayer familiarity with computer tax programs increased, the number of phone filers steadily declined, so the agency disconnected the TeleFile option. Some consumer advocacy groups continue to call for reinstatement of phone filing, but odds are not in their favor.

The implicit message: If you filed by phone before, you now need to check out some type of computerized tax-filing method.

W-2s: Signatures still required
Electronic filing changes the tax ground rules in many ways. But there are a couple of things that don't change: You must still sign your return, and you have to have your W-2 to file.

The signature requirement can be met by selecting a five-digit personal identification number to enter on your e-filed form. Tax software programs that support e-filing will walk you through the PIN signature process. If you hire a tax preparer, he or she can help you select your numeric signature. By "signing" your electronic 1040 this way, the IRS can start processing your return immediately.

Now about that W-2 data demand. Whether you file the old-fashioned way or electronically, you'll need this document, or at least all the data it contains. If you don't have it, or don't enter in the correct information, you'll run into problems when the IRS double-checks your entries against the official W-2 that your employer sends to you and the IRS.

When you use a preparer to e-file your return, you must give that person a copy of your W-2 (and other income statements) before he or she can transmit your form. If you are e-filing yourself, you enter the W-2 data (income earned, federal tax withheld, employer's tax identification number, etc.) into the tax software program.

Employers should send W-2s to employees by the end of January. If after that time you're still waiting on your income statement, bug your payroll administrator! If that doesn't work, the IRS has a substitute form you can submit.

Other electronic tax considerations
E-filers also should look into the electronic transfer of tax money -- either a refund coming to you or money you owe the IRS.

You can have your refund directly deposited to a chosen account by giving the IRS your personal account details. This should shave a few more days off the wait for your refund.

If you owe, you can have money sent directly to Uncle Sam through several e-payment methods, from credit card payments (remember that you'll also have to pay a processing fee) to direct transmission of the money to the IRS. With the latter, known as the Electronic Federal Tax Payment System, or EFTPS, you can even e-file your return today, but schedule your payment for the April filing deadline.
Watch: "Paying with plastic"

And don't forget about state tax obligations. In 37 states and the District of Columbia, taxpayers can e-file state returns at the same time they file federal forms. The federal-state e-file program lets taxpayers send both returns to the IRS, and the feds then electronically forward the state return to the appropriate authority.

-- Updated: Jan. 19, 2009
 
Page | 1 | 2 |



 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compare Rates
NATIONAL OVERNIGHT AVERAGES
30 yr fixed mtg 4.97%
48 month new car loan 6.79%
1 yr CD 1.58%
Rates may include points
- advertisement -
ADVERTISING PARTNERS
- advertisement -
- advertisement -

News & Advice | Compare Rates | Calculators
Mortgage | Home Equity | Auto | Investing | Checking & Savings | Credit Cards | Debt Management | College Finance | Taxes | Personal Finance
About Bankrate | Privacy | Online Media Kit | Partnerships | Investor Relations | Press/Broadcast | Contact Us | Sitemap
NASDAQ: RATE | RSS Feeds | Order Rate Data | Bankrate Canada | Bankrate China

* Mortgage rate may include points. See rate tables for details. Click here.
* To see the definition of overnight averages click here.

Bankrate.com ®, Copyright © 2009 Bankrate, Inc., All Rights Reserved, Terms of Use.


 

Quick Links

Home page
Open houses
Local property sales
Resorts and vacation rentals
Rooms for rent
Seasonal rentals
Other rentals listings
Other for sale listings

Resources

Real estate news, blogs
Florida Home: New Homes New Homes
Florida Home: Residences Residences
Home & Garden
Clasificados en Español
Education guide

Partners

Bankrate mortgage interest rates
Cityfeet.com commercial properties
Palm Beach Chamber of Commerce
Realtor Assn. of the Palm Beaches
Regional MLS
More partners

Services

Need help?
Feedback
Place an ad
Visitor agreement
Privacy policy


PalmBeachPost.com
COX Newspapers