The traditional method of pen and paper is going away and digital is taking over. Filing your taxes online is now easier and more secure than ever.<\/p>\n
Sitting down with pencils, scrap paper, and\u00a0income tax forms\u00a0for the annual tax preparation chore is enough to give anyone a headache. Fortunately, the IRS has streamlined and simplified the process by creating an alliance (called \u201cFree File\u201d) with numerous tax preparation software companies, which enables taxpayers to\u00a0e-file taxes online for free<\/a>.<\/p>\n Free File is accessible through the IRS website. It eliminates a lot of the tedium and frustration that often comes with\u00a0income tax filing<\/a>, but you\u2019ll still need to be careful to avoid making mistakes that can result in an erroneous or even rejected\u00a0tax return.<\/p>\n RELATED: Made a Mistake on Your 1040? You Can Amend Your Tax Return<\/p>\n When you e-file taxes online for free, make sure you gather all your documents \u2013 such as receipts, bills, and other tax-related forms sent to you by your employer, financial institutions, and so on. Make sure you also familiarize yourself with the variety of\u00a0online tax preparation software<\/a>\u00a0available to help you file your taxes online.\u00a0 As you enter your information into the\u00a0online tax forms<\/a>, pay attention to these common areas for mistakes that other taxpayers have experience when they e-file.<\/p>\n >> Start Your Free E-file<\/strong><\/a><\/p>\n If you\u2019re expecting a\u00a0tax refund<\/a>, e-filing your taxes online can get the money into your bank account in as little as 10 days through Direct Deposit (versus the average 6 weeks it can take to receive a tax refund though the paper\/mail filing method).<\/p>\n Here are some mistakes to avoid as you e-file your taxes online free:<\/p>\n * Make sure you\u2019ve provided all of your information correctly. It\u2019s recommended that you double-check what you\u2019ve entered on each page\/part of the e-file process before you proceed to the next step. Most online tax preparation software will give you the option to review your information before you submit it officially.<\/p>\n * Make sure you\u2019ve included your\u00a0taxable income<\/a> from all sources for both you (and your spouse if filing jointly) where prompted \u2013 including wages, tips, and consulting fees\u2026 as well as dividend and interest income from your bank, credit union, or other financial institution.<\/p>\n * If you sold stocks, bonds, mutual funds, or other securities during the year, make sure you have the\u00a0IRS Tax Form 1099 (Miscellaneous Income)<\/a>\u00a0gross sales proceeds from your financial institution. You will also need to know the original purchase price of the shares, plus any commissions or other fees that are included in your original cost basis. Be ready to provide the trade\/purchase dates for each security that was sold, because it will determine whether the\u00a0capital gain or loss from the sale is categorized as\u00a0short-term or long-term.<\/p>\n * When you\u00a0e-file taxes online<\/a>, make sure you pay attention to any\u00a0tax credits<\/a>\u00a0or\u00a0tax deductions<\/a>\u00a0you may be eligible for \u2014 such as tax relief for\u00a0education costs<\/a>,\u00a0charitable contributions,\u00a0business expenses,\u00a0job-related moving expenses<\/a>, and\u00a0medical expenses<\/a>. These tax breaks can really help reduce the amount of income tax that you owe.<\/p>\n * Don\u2019t be afraid to take advantage of the online assistance available when you e-file taxes online for free. For help answering general\u00a0federal income tax\u00a0questions<\/a>, refer to the \u201cHelp\u201d tab on the top of the\u00a0IRS website. Here you can ask the IRS general tax questions about to filing a tax return \u2014 including which tax form to use, who you can claim as a dependent, what you can deduct, when to file, where to file, and changes in tax law.<\/p>\nMistakes to Avoid With E-File<\/h3>\n