Option 1st Financial Blog

With the deadline for filing taxes approaching, we hope that you find this Blog timely and persuasive enough to consider filing your taxes electronically, if you have never done so before or if in the past, you have opted to secure a loan against your refund through your tax preparer or other company. In these tough economic times, the goal is to receive your refund as quickly as possible, without incurring any fees from a third party and to not give the government a tax free loan by waiting several weeks for your return. 

Electronic filing, referred to as e-filing is an option the Internal Revenue Service (IRS) offers to anyone that would like to forgo filing their return by paper. There are many benefits to e-filing your taxes, but for some reason, many people have resisted this option. After reading today's Blog,  we hope that you understand that e-filing offers a way to receive your refund quickly and without the exorbitant fees charged by tax preparers and others. So, here are the Top 5 reasons to at least consider filing your taxes electronically? 

You'll get your tax refund faster. When you e-file, you could get your refund in two or three weeks. When you file on paper, it typically takes a minimum of six to eight weeks.

Your return is less likely to be stolen or get lost in the mail. I know someone who is still in the process of completing the required paperwork for the IRS because his income tax refund was taken from his mailbox in tax year 2008. There are people who target unsecured mail boxes during income tax season. It can be a lucrative business for predators. In addition, the post office has been known to loose mail so why take the risk with your refund. Theft of your check or lost in the mail refund checks are not an issue if you file electronically. 

You may be able to e-file for free. If you earned less than $56,000 in 2008, you probably qualify for the IRS Free File program. If you have a simple return (standard deduction, using 1040EZ), Turbo and TaxAct have free versions, with free e-file, that you may qualify for.

There's no need to wait at the post office. We've either observed, waited in line or heard the stories of long lines on April 15th, to mail taxes. When you file electronically, you do not have to wait in line and can file your taxes late in the evening if you would like, with no lines to wait in but instead, in the comfort of your home if you file yourself or your accountant's office. 

Your return is more likely to be accurate. When you e-file, you typically do so through software that can double-check your math. Any mistakes you may make with a calculator are checked by the software and remedied before you send your return to the IRS. When you e-file, you'll get an electronic confirmation that the IRS received your return.

So, now that you have the facts, for those of you that have never filed electronically, we hope that you will consider doing so this year. As always, it is our goal at Option 1st Financial to provide you with timely information and tips to help you save money and build wealth. 

Updates on the President's Homeowner Affordability and Stability Plan will be detailed in a future Blog, so keep checking back!   

Best of Luck in the decision making process!