Question: Should I E-file my taxes? Could my tax information get stolen?
When you e-file your taxes, you not only transmit your tax data, but credit card or bank account numbers for paying your taxes or to have a refund deposited. So, being concerned about electronic filing is understandable.
Answer: Chances are extremely slim-to-none that your income tax data could be stolen when you e-file, and e-filing is more secure than mailing a tax return. An electronically filed return is encrypted and cannot be read as it moves between your computer or the online tax software you use and the IRS or state tax agency you submit the return to.
Verify Tax Software E-File Policy
If you still have concerns about filing your tax return electronically, go to the web site for the tax software you want to use and read their privacy policy and search their support pages to learn about the technology they use for e-filing. The tax software should guarantee that it uses the most secure technology supported by the IRS. If you are considering filing a state return electronically, be sure the tax software information includes the same security for state tax agencies.More Reasons to E-file
Mail gets lost or stolen: Your tax return can get lost in the mail while an electronically filed return will not be lost. File electronically, and you get immediate confirmation that the IRS received your return.Know when your refund will be deposited:; If you have a tax refund coming, e-file and you will get a notice of when to expect your refund to be deposited. Refunds are deposited in 8 days.
No transposed numbers: When you prepare your tax return with paper tax forms, a calculator or spreadsheet software and a pen, there is the chance of making an error when you transfer in your calculations to your tax forms. Income tax software is required to file electronically, and it does all the calculations for you then double-checks them.
E-filed returns do not pass through human hands: When you mail in a tax return, a person at the IRS has to enter your data into their computer systems. This person could make a keying error. When you e-file, your data is never seen or re-entered. Data goes directly from your software to the IRS or state.