What is E-File?

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Updated for 2012

What is IRS E-File?

About 35 million taxpayers e-filed from their home computer during 2010, and its been increasing each year ever since. Looks like taxpayers are getting comfortable with filing their own return electronically!

IRS e-file is the IRS electronic filing program.

It includes:

Electronic filing of tax return information and
Electronic payment options, which include:
- Electronic funds withdrawal
- Credit cards
- The Electronic Federal Tax Payment System (EFTPS)

E-filing provide several benefits:

Quicker refunds (about 3 weeks compared to 6 or 8 weeks my mail)
Convenience
No chance of a lost, stolen, or undeliverable refund
No last-minute crowds to contend with at the post office
Accuracy

E-Filed Returns Skyrockets to Almost 99 million Returns!

According to the IRS, nearly 99 millions individuals filed their federal income tax returns electronically during 2010, a 3% increase from 2009. For 2011, almost 70% of the 141.5 million returns have already been filed electronically.

Here are the IRS stats for 2001 through 2010.

Direct Deposit Options

Taxpayers are also jumping on the direct deposit bandwagon to get their refunds even faster (a week or more sooner).

And now you can designate your refund be deposited into up to three accounts (e.g., checking, brokerage, savings).

Never e-filed?

You should definitely consider it.

But, before you file your return, make sure you don't miss these 11 Most Overlooked Deductions. Also check out these 10 Oddball Tax Deductions.