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About Online Filing
Of the 95 million
tax returns filed electronically with IRS in 2009, 32 million were prepared
and e-filed by taxpayers using computers without the help of a paid preparer.
And 2009 was the fifth consecutive year
that more of these "do-it-yourself" filers used web-based (online) programs
instead of shrink-wrapped desktop software to prepare and file their returns.
Why? Here are a few reasons:
-
Desktop
software must be purchased in advance, and once opened, cannot be returned;
web-based programs can be tried for free – the user does not have to purchase
it until he or she prints or e-files the return.
-
Desktop
software is licensed to be installed and used on one computer, forcing
taxpayers to use the same computer to update their tax return information;
web-based tax returns can be updated from any computer at any location.
-
Desktop
software requires the user to download/install the latest updates, patches,
and fixes, exposing them to potential errors if they fail to do so; web-based
programs are automatically updated.
Is Online Filing Right For You?
Before you decide to do your own taxes
online, first consider some advice from 800-TAX REFUND. Thanks to our
award-winning
IRS e-file
by FAX!
service, we've
reviewed tens of thousands of self-prepared tax returns over the years, many of them
computer-generated, and have a good idea where taxpayers are most likely to
make mistakes when preparing their own returns:
-
Online
filing appears to be best suited for young, low income, single wage earners
who are least likely to qualify for Earned Income Credit (minimum 25 years of
age) or Retirement Savings
Contribution Credits. If wages are over $9,350 and these filers could have
Student Loan Interest Deductions and/or Education/Tuition Credits for the
first time, then it
would probably be beneficial to seek the services of a tax professional by using our
Tax e-form
service.
-
Online filing may also be better suited for taxpayers whose
tax
situation has not changed since last year's return was filed. If you have a
good grasp of your own tax situation and have last year's return handy to
compare this year's results to, and if you're sure that nothing more can be gained by
hiring a tax professional, then
you're a good candidate for online filing. Once your return is prepared online, if you're still a little apprehensive
about pressing the "send" button, then print out your tax return, download our
OLF Review Request
and let 800-TAX REFUND professionally review your completed online tax
return for just $24.95 more.
-
If your tax situation is complex, or if your tax situation
calls for a review or preparation of a new or unfamiliar form (college tuition,
home sale/purchase or re-finance, new business or rental property, sale of stock or mutual fund, etc.) then we
do not recommend online filing, as it would pay to seek the services of a tax
professional
by using our
Tax e-form
service.
Regardless of your tax
situation, keep in mind that you can still explore and try out most online
filing programs for free. See how intuitive the program is, how easy it is
to find answers, and how responsive technical or tax support is. Once you
decide to do your taxes online, please heed our most important piece of
advice: print out and review your tax return before pressing the send
button!
Finally, should you
decide to do your taxes online, make sure you feel comfortable with the company that's handling your tax
information. In 2009 IRS promoted 23 Online Filing companies as IRS e-file
Partners, down from 103 companies they promoted in 2003. 800-TAX REFUND
earned the IRS e-file Partner designation for twelve consecutive years, a distinction just two
other companies have achieved.
Frequently Asked Questions
Note: More Online Filing FAQs are answered
on the Online Filing website.
How much does Online Tax Filing cost?
Which Federal Forms can
be prepared using Online Tax Filing?
Which States can Online Tax
Filing prepare
and/or e-file?
What if I encounter technical problems while using
Online Tax Filing?
How do I get answers to my tax questions while
using Online Tax Filing?
How accurate is Online Tax
Filing?
How safe is my tax information
online?
What's your online Privacy Policy?
Does Online Tax
Filing carry my tax information over from year to year?
How soon can I expect my refund if
I file electronically?
Is my refund guaranteed to be on time?
What,
no Audit Protection?
Return to Top
How much
does Online Tax Filing cost?
We are offering 1040EZ filers to use
Online Tax Filing for $12.95, while Form 1040A and Form
1040 (Long) filers will pay a flat fee of $28.95,
regardless of how many forms or schedules are prepared with the return.
Free State preparation and free Fed/State e-file is included for all paid
users.
Return to F.A.Q.'s
Which
Federal forms can be prepared using Online Tax Filing?
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FEDERAL FORMS and SCHEDULES
1040EZ 1040A 1040 plus... |
|
Sch A |
Itemized Deductions |
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Sch B |
Interest and
Dividends |
|
Sch C |
Self-Employment |
|
Sch D |
Capital Gains &
Losses |
|
Sch E |
Rental and Royalty
Income |
|
Sch EIC |
Earned Income Credit |
|
Sch K-1 |
Income From Estate, Partnership, S-Corp |
| Sch SE |
Self-Employment Tax |
|
Sch R |
Credit for the
Elderly or Disabled |
|
Form W-2 |
Wage Income |
|
Form W-2G |
Gambling Winnings |
|
Form 1098 |
Mortgage Interest
Statement |
|
Form 1099-C |
Cancellation of Debt |
|
Form
1099-INT |
Interest Income
Statement |
|
Form
1099-DIV |
Dividend Income
Statement |
|
Form 1099-G |
Govt Payments
(Unemployment, Tax Refunds) |
|
Form 1099-R |
Pension & Annuity
Income Statement |
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Form 1099-RRB |
Railroad Retirement Benefits |
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Form
SSA-1099 |
Social Security
Benefits Statement |
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Form 1116 |
Foreign Tax Credit |
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Form 2106 |
Employee Business
Expenses |
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Form 2120 |
Multiple Support
Declaration Agreement |
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Form 2210 |
Penalty for Underpayment of Estimated Tax |
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Form 2441 |
Child & Dependent
Care Credit |
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Form
3903 |
Moving Expenses |
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Form 4137 |
Soc Sec/Medicare Tax on Reported Tips |
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Form 4562 |
Depreciation &
Amortization |
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Form
4684 |
Casualty and Theft
Losses |
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Form 5329 |
Tax on Early
Retirement Distributions |
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Form 5695 |
Residential Energy Credits |
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Form 8283 |
Non-Cash Charitable
Contributions |
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Form 8332 |
Release of Exemption
Claim for Child |
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Form 8379 |
Injured Spouse Claim and Allocation |
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Form 8606 |
Nondeductible IRAs &
ESAs |
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Form 8812 |
Additional Child Tax
Credit |
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Form 8814 |
Parent Election to
Report Child's Income |
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Form 8815 |
Exclusion of Interest
from EE & US Svgs Bonds |
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Form 8829 |
Business Use of Home |
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Form 8839 |
Qualified Adoption
Expenses |
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Form 8853 |
Medical Savings Account |
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Form
8862 |
Info to Claim EIC
After Disallowance |
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Form 8863 |
Education Credits |
|
Form 8880 |
Retirement Savings
Contribution Credit |
|
Wksht MFS |
Community Property State Income Allocation |
Return to F.A.Q.'s
Which
States can Online Tax Filing prepare and/or e-file?
All 42 states that have an income tax!
Return to F.A.Q.'s
What if I
encounter technical problems while using Online Tax Filing?
Besides more technically-oriented FAQs on the Online Filing site to help you
with any technical problems you may be experiencing, there's a Contact Us
menu option for you to contact Online Filing Tech Support Staff via e-mail.
You'll generally get an answer to your technical questions within 24 hours,
though it may take longer during peak season. Online Filing Tech Support
Staff cannot be reached via telephone -- one of the disadvantages of
"do-it-yourself" Online Filing. If you are experiencing
technical difficulties and do not get your technical problem(s)
satisfactorily resolved via e-mail, you may wish to consider our simpler,
more reliable fax filing services:
IRS e-file by FAX!
and
Tax e-form
.
Return to F.A.Q.'s
How do I
get answers to my tax questions while using Online Tax Filing?
There are Help description icons associated with just about every entry
field on the online tax forms themselves, which offer limited assistance
with tax form questions. A Contact Us menu option is also available for you to contact Online
Filing Support Staff via e-mail for help with a basic tax-related question.
A basic tax question is defined as one for which the answer can be found in
the 1040 tax booklets. You'll generally get an answer to your e-mail
question within 24 hours, though it may take longer during peak season. Do
not expect answers to more than one tax question. Our experience has been
that if you have multiple tax-related questions, you are not a good
candidate for preparing your own taxes online. Should you have multiple tax
questions, or pose a tax question requiring research or expertise beyond the
basics, our Support Staff will recommend you get professional assistance
using our
Tax e-form
preparation service, or have your completed online return professionally reviewed via
our
OLF Review Request.
In an effort to address IRS concerns over the
frequency of taxpayer errors online, we will also be offering registered
users limited free telephone support via our toll-free line to answer a basic tax question.
Return to F.A.Q.'s
How
accurate is Online Tax Filing?
Drake Software, the 32-year tax software industry veteran that provides the
round-the-clock internet functionality for
our Online Tax Filing
guarantees the accuracy of the calculations.
Calculations are defined as the numerical addition, subtraction, division,
or multiplication of numbers, and related program features that select
numbers from tax tables. It does not include any instance where a taxpayer
makes a decision to substitute a number for the one automatically computed
by the program, known as an "override". Drake Software will pay any IRS penalties and/or interest initially assessed to the taxpayer for a tax underpayment resulting from an error in the program's calculation. No other
warranty is expressed or implied. See the Terms of Service for details when
you enter the online filing site.
Return to F.A.Q.'s
How safe is
my tax information online?
When transmitting information between you and the Online Filing server, as well as when communicating with the Internal Revenue Service (IRS) for electronic filing, data security is handled through a protocol called Secure Sockets Layer (SSL). SSL is an established and mature Internet security standard with two dominant features: Data Encryption and Web Server Authentication. Data Encryption is the process of transforming legible information into a complex arrangement of illegible information. Encryption strength is measured by the length of the key used to encrypt the data; the longer the key, the more effective the encryption. Using the SSL protocol, data transmission between you and the Online Filing web server is performed at the highest domestic level of encryption strength, currently
256-bit. With Web Server Authentication, a SSL
certificate is issued to ensure authentic and accurate identification of a
secured web server. This translates into a digital ID, kind of like an
electronic fingerprint, which is included in the key used to encrypt the data.
Only the Online Filing web server, in this case, is able to decrypt the data
that you transmit because it is the intended (and digitally
certified) secured web server for your data transmission. Our
Online Filing site resides under a VeriSign certified Secure Socket Layer (SSL) url and all subsequent web pages are verified through the secure connection of this SSL. Verification may be done by visiting the VeriSign web site or by clicking the VeriSign Security logo on the OLF login screen.
Return to F.A.Q.'s
What's your
Online Privacy Policy?
Please review the Online Privacy Policy when you go to
the Online Filing website. The Online Privacy Policy is accessible via a
link in the Terms of Service agreement.
Return to F.A.Q.'s
Does Online
Tax Filing carry my tax information over from year to year?
Yes, at your option.
If you used our Online Tax Filing
in 2009 you will be prompted in this year's program to carry forward your
tax information from last year. Of course, we recommend you review and
update all information that gets carried forward.
Return to F.A.Q.'s
How soon
can I expect my refund if I file electronically?
Check out the schedule below. As
you see, IRS deposits refunds every Friday, but your tax return must be accepted by IRS
at least 9 days before the deposit date. **NOTE - beginning February 17,
2010, IRS will begin implementing a new processing system which will deposit
refunds in five business days. About 50% of eligible returns will be
processed by the new system during the last 11 days in February, and about
75% of eligible returns will use the new system in March and beyond.
Unfortunately for this tax season, IRS will not provide us with any
indicator at the time of acceptance whether a return is being processed by
the old or the new system.
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For Tax Returns Accepted by IRS On... |
Expect
Your Deposit On... |
|
Jul 29 thru Aug 4 |
Aug 13 |
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Aug 5
thru Aug 11 |
Aug 20 |
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Aug 12
thru Aug 18 |
Aug 27 |
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Aug 19
thru Aug 25 |
Sep 3 |
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Aug 26
thru Sep 1 |
Sep 10 |
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Sep 2
thru Sep 8 |
Sep 17 |
|
Sep 9
thru Sep 15 |
Sep 24 |
|
Sep 16
thru Sep 22 |
Oct 1 |
|
Sep 23
thru Sep 29 |
Oct 8 |
|
Sep 30
thru Oct 6 |
Oct 15 |
|
Oct 7 thru Oct 13 |
Oct 22 |
|
Oct 14 thru Oct 18 |
Oct 29 |
|
|
|
|
|
If you do not want to have your
refund direct-deposited, you can receive your refund check by mail, but these
take ten days longer to receive.
Return to F.A.Q.'s
Is my refund guaranteed to be on
time?
Our experience has been that about 95% of all refunds are deposited on the
date expected. We've seen 5% or so held back by IRS for what they call a
"compliance review" and deposited one week later. Other reasons for delay of
refund are as follows:
Taxpayer owes delinquent child support
Taxpayer has certain other delinquent debt with Federal or State agencies, such
as student loans, military, etc.
Primary taxpayer's name and/or SSN has changed since filing last year's return
or taxpayer did not file a return last year (possible one week delay)
Taxpayer has claimed a blatantly unallowable deduction
Social Security Name/Number for taxpayer, spouse, or dependent does not match
information provided by the Social Security Administration
Return has been selected by IRS for Earned Income Credit review
Return to F.A.Q.'s
What, no Audit Protection?
We're not going to sell you something that we believe you don't need. First, of the 2% of all individual tax returns that get audited, the vast majority are high income, contain questionable business/investment income/losses, or claim exaggerated or unallowable deductions or credits. If you fear getting audited because your return is complex, you should not be doing your own taxes online -- pay a professional to do your taxes. If your tax return is not complex, and if you can substantiate your claim for exemptions, credits, and deductions, then what do you have to fear if, by some slim chance, you get a letter from IRS? A well-documented explanation of your claim will often convince IRS to waive or adjust their position. If, on the other hand, you cannot substantiate your claims, then no amount of "Audit Protection" will pay your overdue taxes for you.
Return to F.A.Q.'s
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