Guidelines for filing tax online

Individuals that wish to file for their taxes online can simply do it by visiting the official website of IRS. This is available free of cost for those individuals that have an AGI or $57,000 or less. Software is available for filing federal taxes, but some software is available for filing state taxes. Filing is done in 3 parts.

Taking the first step

Before beginning the process of filing, the applicant needs to have a copy of the previous year’s tax return, W-2s, 1099s and other such relevant documents. If the applicant has an AGI (adjusted gross income) of $57,000 or less, then they are applicable for free filing of their taxes.

To become eligible for the free filing and to get an estimate, the applicant must look at the previous year’s AGI, which should be $57,000 or less. Irrespective of this individuals that have AGI of more than $57,000 can also opt for the free fillable forms that are also available on IRS website.

The second part

To help with the free filing, many companies offer their software. Attention should be paid to the eligibility guidelines for using the company software. The guidelines will differ from one company to another based on age, status (aliens or residents), state availability, eligibility for the earned income, tax credit, military status, free extensions etc.

Finally e-filing the returns

IRS provides a secure file over which the prepared tax return stamen needs to be transmitted. To ensure the privacy and safety of the file, the website uses encryption data. This year all individuals need to complete their filing by April 17, 2012. In case the applicant fees that there could be some delay in filing for the taxes, an extension for filing the taxes can be requested.

For payment of taxes online, the payment options available to the applicant are credit card, debit card, electronic funds withdrawal, Electronic federal tax payment system etc. When the return is being filed, it also needs to be electronically signed wi! th eithe r past year’s AGI or a secure PIN which is a 5 digit number chosen by the applicant. After filing the return, the applicant can view the status of their tax refund after 72 hours.

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