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Posted: 4/17/2006 6:41:18 AM EDT
Taxes and the IRS


e IRS is encountering resistance to its effort to encourage electronic filing of federal taxes from millions of tech-savvy taxpayers who refuse to e-file because of the cost or security concerns. About 55% of taxpayers are expected to e-file this year, up from 51% in 2005. But last year, 36 million taxpayers or their tax preparers - more than a quarter of individual filers - prepared tax returns on a computer, printed them out and mailed them to the IRS. A mailed-in return costs $2.49 to process vs. 78 cents for one that's e-filed, the IRS says.


I thought about e-filing but everytime I look into it, it appears to cost money to do it. I don't get much of a refund so any money I spend to process the tax return takes away more of my money. I just print it out and mail it in. It costs me 2 first class stamps and just a few months of waiting.
Link Posted: 4/17/2006 6:47:29 AM EDT
[#1]
It does cost money but pretty much every software package rebates the fee back to you so it's free.  Plus if you make under a certain income it is free anyways.

And if anyone thinks that costing the IRS more money hurts the government, they are forgetting who pays the government's salary.
Link Posted: 4/17/2006 6:50:36 AM EDT
[#2]
Last year(2004 taxes) I used Turbo tax online. It was free.
This year they wanted to charge me so I went some where else for free.

Both places were going to charge me 20 bucks to do m state taxes. VA's tax department lets you file on THEIR Web site for free. IRS should have the same instead of these 3rd parties.
Link Posted: 4/17/2006 6:54:37 AM EDT
[#3]
E-Filing for me.  


Sell your soul for the ease.  
Link Posted: 4/17/2006 6:57:42 AM EDT
[#4]
If you're filing simple 1040EZ & 1040A return etc, no problem filing an e-return and you would save yourself postage, it is when you have various deductions, exraordinary incomes and filing variuos schedules etc that you want to mail it in.
Link Posted: 4/17/2006 7:15:58 AM EDT
[#5]
I've always used the 1040A. I figure my taxes in the middle of Jan. If I get a refund I send it right in. Usually have my money back by the middle of Feb. If I owe I take my time gathering the money and then send it in at the last moment. There have been a two or three times I got a state refund that was just a bit bigger than what I owed the Feds. So I sent that in right away and when I got my state refund I'd write a check to the IRS and mail it in.

At this point I just don't trust on-line filing.
Link Posted: 4/17/2006 7:26:28 AM EDT
[#6]

Quoted:

If you're filing simple 1040EZ & 1040A return etc, no problem filing an e-return and you would save yourself postage, it is when you have various deductions, exraordinary incomes and filing variuos schedules etc that you want to mail it in.




Why?    Turbotax handles any sized return easily.

I E-File a complex return
Link Posted: 4/17/2006 7:27:55 AM EDT
[#7]

Quoted:
It does cost money but pretty much every software package rebates the fee back to you so it's free.  Plus if you make under a certain income it is free anyways.

And if anyone thinks that costing the IRS more money hurts the government, they are forgetting who pays the government's salary.



And if you think the saving are passed back to you your forgetting that it is governement you are dealing with.

If I'm getting money -  E-File
If I owe money - Paper return mailed on the deadline.
Link Posted: 4/17/2006 7:28:30 AM EDT
[#8]

Quoted:
If you're filing simple 1040EZ & 1040A return etc, no problem filing an e-return and you would save yourself postage, it is when you have various deductions, exraordinary incomes and filing variuos schedules etc that you want to mail it in.



Exactly.

Plus, when you owe them money, there's no real incentive to do things quickly.
Link Posted: 4/17/2006 7:34:17 AM EDT
[#9]
Link Posted: 4/17/2006 7:36:24 AM EDT
[#10]


Seems like a decent service for the price.   Quick, helpful, and easy.  
Link Posted: 4/17/2006 7:42:53 AM EDT
[#11]
E-file and direct deposit got me my federal return in 10 days.  Turbo Tax online is free for federal taxes if you make under (I think) $50k, but they hit me for $20 to do the Jersey state return at the same time.  Didn't have my '04 return handy either, so I ended up having to print out a signature form and mail that in to the IRS.  They'll do without the sig page if you have some info off your '04 return though.

That said, Turbotax reminded me to deduct my union dues and such, which I had all but forgot.  $80 more back more than paid the return fee.
Link Posted: 4/17/2006 7:59:30 AM EDT
[#12]
I do mine by hand and mail them in. If I have to take the time to do it, they can take the time to open an envelope and read it.

If they would fix the tax codes, it would be alot easier on everyone, including the IRS.
Link Posted: 4/17/2006 8:02:42 AM EDT
[#13]
Link Posted: 4/17/2006 8:04:51 AM EDT
[#14]

Quoted:
While it may seem  a little foolish, paying $10 to get a big tax refund in two weeks when I e-file is OK, but when I owed bigtime this year, I printed it and mailed it in last week. I'm certainly not gonna spend more money so they can get my money even faster.



Plus IIRC, if you owe money and e-file, you still have to mail in your 1040-V payment voucher and your form of payment.  Might as well just mail in the whole damn thing at the same time - tax return, voucher and payment.
Link Posted: 4/17/2006 8:09:43 AM EDT
[#15]

Quoted:

If I'm getting money -  E-File
If I owe money - Paper return mailed on the deadline.



Exactly
and if they charge me anything?
forget it
Now they want to charge me to pay my taxes?  

You're kidding right?
Link Posted: 4/17/2006 8:13:51 AM EDT
[#16]

Quoted:
Plus IIRC, if you owe money and e-file, you still have to mail in your 1040-V payment voucher and your form of payment.  Might as well just mail in the whole damn thing at the same time - tax return, voucher and payment.


It is worth it to me to pay the $15 so I do not have to send in every little piece of documentation/reciepts/etc. When you file electronically, they do not require you to send in the 1099s, et al.

eta: For example, my ELOC company does not send out a 1099 if the interest is less than a certain amount. Guess what, I never get a 1099, but I claim the interest because it is easy to calculate (it is an interest-only ELOC).
Link Posted: 4/17/2006 8:15:57 AM EDT
[#17]

Quoted:

And if you think the saving are passed back to you your forgetting that it is governement you are dealing with.





It pisses me off how the .gov tries to make giving away my $$$ to the fat and lazy masses as easy as possible, and adds insult to injury by making me pay to make it easier on the .gov to  collect my taxes.

Paper returns for me until it costs more than e-file.

Link Posted: 4/17/2006 8:46:36 AM EDT
[#18]

Quoted:

Quoted:

And if you think the saving are passed back to you your forgetting that it is governement you are dealing with.





It pisses me off how the .gov tries to make giving away my $$$ to the fat and lazy masses as easy as possible, and adds insult to injury by making me pay to make it easier on the .gov to  collect my taxes.

Paper returns for me until it costs more than e-file.




Bingo.  Mailing it in costs me $.39.  When e-filing costs less than that (and I don't mean after rebate and buying a software package) I'll do it.
Link Posted: 4/17/2006 8:48:06 AM EDT
[#19]
I'm sending an extra $6000 to the IRS this year so I am printing my forms out as we speak
Link Posted: 4/17/2006 8:50:12 AM EDT
[#20]

Quoted:
Taxes and the IRS


e IRS is encountering resistance to its effort to encourage electronic filing of federal taxes from millions of tech-savvy taxpayers who refuse to e-file because of the cost or security concerns. About 55% of taxpayers are expected to e-file this year, up from 51% in 2005. But last year, 36 million taxpayers or their tax preparers - more than a quarter of individual filers - prepared tax returns on a computer, printed them out and mailed them to the IRS. A mailed-in return costs $2.49 to process vs. 78 cents for one that's e-filed, the IRS says.


I thought about e-filing but everytime I look into it, it appears to cost money to do it. I don't get much of a refund so any money I spend to process the tax return takes away more of my money. I just print it out and mail it in. It costs me 2 first class stamps and just a few months of waiting.



The cost of the turbo tax is tax deductible
Link Posted: 4/17/2006 9:03:07 AM EDT
[#21]
I print mine out and mail them in.  Why should I pay an additional fee to e-file just to make things easier and cheaper for the IRS?

I used TurboTax to prepare my returns.  Like someone else said, I can deduct the cost of the software.  Since I made more than $50,000 it would've cost me $15 to e-file my federal return and another $15 to e-file my Missouri return.  That's $30 to e-file both returns.  It was a lot cheaper to mail them in.  When the IRS starts making e-filing free (or at least cheaper than mailing my returns in), I'll mail them in.  If it matters, I was due a refund on both returns.

Yes, TurboTax offers a rebate for the cost of e-filing one federal return, but you have to mail in the rebate form.  So, if I have to mail something anyway, why not just mail the tax return to begin with?  Then, I don't have to wait 6-8 weeks for them to send me my $15 e-filing fee back.
Link Posted: 4/17/2006 9:11:32 AM EDT
[#22]
I tried to efile but am caught between 2 gov agencies.

SSA will not issue my 4 year old Legal Immigrant step daughter a SSN because she has no need of one at this time.

IRS will not accept an Efile return unless my step daughter has a SSN, her ARN is not good enough.

Link Posted: 4/17/2006 9:14:14 AM EDT
[#23]
I like paper.
Link Posted: 4/17/2006 9:22:33 AM EDT
[#24]

Quoted:

Quoted:

And if you think the saving are passed back to you your forgetting that it is governement you are dealing with.





It pisses me off how the .gov tries to make giving away my $$$ to the fat and lazy masses as easy as possible, and adds insult to injury by making me pay to make it easier on the .gov to collect my taxes.



Yep - you know what NY State tried to pull this year?

They sent me a scannable form for me to fill out - they wanted me to hand write all the information from my W-2 onto this form. They said that I could not attach the copy of my W-2 instead.

Not worth my time. My refund was $4.00. I threw away the form and mailed in my W-2 anyway. They sill sent me my check.
Link Posted: 4/17/2006 9:58:04 AM EDT
[#25]

Quoted:
The cost of the turbo tax is tax deductible


It falls under the 2% deductions. Most people do not have enough of those types to be able to deduct filing costs.
Link Posted: 4/17/2006 10:02:47 AM EDT
[#26]

Quoted:

The cost of the turbo tax is tax deductible



1. Tax deductible does not equal free or very low cost.

2.  If I pay for TurboTax, it's because it will save me time and effort.  Paying to e-file does not save me time and effort.  I'd be paying to save the IRS time and effort.
Link Posted: 4/17/2006 10:08:36 AM EDT
[#27]

Quoted:
I print mine out and mail them in.  Why should I pay an additional fee to e-file just to make things easier and cheaper for the IRS?

I used TurboTax to prepare my returns.  Like someone else said, I can deduct the cost of the software.  Since I made more than $50,000 it would've cost me $15 to e-file my federal return and another $15 to e-file my Missouri return.  That's $30 to e-file both returns.  It was a lot cheaper to mail them in.  When the IRS starts making e-filing free (or at least cheaper than mailing my returns in), I'll mail them in.  If it matters, I was due a refund on both returns.

Yes, TurboTax offers a rebate for the cost of e-filing one federal return, but you have to mail in the rebate form.  So, if I have to mail something anyway, why not just mail the tax return to begin with?  Then, I don't have to wait 6-8 weeks for them to send me my $15 e-filing fee back.



One benefit is that you can wait until the day they are due and do it in a matter of seconds instead of worry if another bumbling government agency (USPS) will actually deliver your return on time.
Link Posted: 4/17/2006 10:10:00 AM EDT
[#28]
It occurs to me that the best way to get the government's attention would be a tax revolt... if only I had the balls to do it.
Link Posted: 4/17/2006 10:21:10 AM EDT
[#29]

Quoted:

Quoted:
I print mine out and mail them in.  Why should I pay an additional fee to e-file just to make things easier and cheaper for the IRS?

I used TurboTax to prepare my returns.  Like someone else said, I can deduct the cost of the software.  Since I made more than $50,000 it would've cost me $15 to e-file my federal return and another $15 to e-file my Missouri return.  That's $30 to e-file both returns.  It was a lot cheaper to mail them in.  When the IRS starts making e-filing free (or at least cheaper than mailing my returns in), I'll mail them in.  If it matters, I was due a refund on both returns.

Yes, TurboTax offers a rebate for the cost of e-filing one federal return, but you have to mail in the rebate form.  So, if I have to mail something anyway, why not just mail the tax return to begin with?  Then, I don't have to wait 6-8 weeks for them to send me my $15 e-filing fee back.



One benefit is that you can wait until the day they are due and do it in a matter of seconds instead of worry if another bumbling government agency (USPS) will actually deliver your return on time.



It's based on postmark date.  Some CPA firms have postmarked stamps run off the meter to give them an extra day or two for the clients to file.  And for the extensions.
Link Posted: 4/17/2006 10:21:10 AM EDT
[#30]
If the E-file costs the IRS less than a buck, why are we charged over $10 to do it?

Kharn
Link Posted: 4/17/2006 10:29:39 AM EDT
[#31]

Quoted:

Quoted:
I print mine out and mail them in.  Why should I pay an additional fee to e-file just to make things easier and cheaper for the IRS?

I used TurboTax to prepare my returns.  Like someone else said, I can deduct the cost of the software.  Since I made more than $50,000 it would've cost me $15 to e-file my federal return and another $15 to e-file my Missouri return.  That's $30 to e-file both returns.  It was a lot cheaper to mail them in.  When the IRS starts making e-filing free (or at least cheaper than mailing my returns in), I'll mail them in.  If it matters, I was due a refund on both returns.

Yes, TurboTax offers a rebate for the cost of e-filing one federal return, but you have to mail in the rebate form.  So, if I have to mail something anyway, why not just mail the tax return to begin with?  Then, I don't have to wait 6-8 weeks for them to send me my $15 e-filing fee back.



One benefit is that you can wait until the day they are due and do it in a matter of seconds instead of worry if another bumbling government agency (USPS) will actually deliver your return on time.



Like gunlvr8 has already pointed out, as long as your return is postmarked by the right day, you're OK.  I was getting refunds though so I figured my taxes and mailed my returns in back in mid-February.  I've had my refunds for at least a month already.

My point was really that I'm not going to pay an extra fee to make things easier on the IRS.  If the IRS wants me to e-file to make things easier for them, they shouldn't charge extra for us to e-file.  When e-filing is cheaper than mailing my returns, I'll start e-filing.
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