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Pls tell me about electronic filing

Please tell me all about electronic filing. I haven't been paying any attention.

What factors should I consider in choosing between filing electronically and mailing a paper return?

For example, can I file electronically directly to the IRS and Calif FTB? Or must I rely on an intermediary?

If the latter, does that mean that my personal data are stored a non- government third-party computer?

I usually use Turbo Tax to prepare both fed and Calif personal tax returns. Does it cost extra to file electronically?

Are there circumstances when I should not or cannot file electronically?

My fed tax return is fairly simple: just Sched A, B, and D. But I usually include an attachment to explain how the investment advisory fee miscellaneous deduction is derived, specifically the %fees attributable to taxable investment income and IRAs.

How do I handle the attachment if I file electronically?

My Calif tax return is simpler. I qualify for Form 540, but I include only Sched CA and D.

Reply to
joeu2004
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You have to use an intermediary. If you use TurboTax, Intuit (the company that makes TurboTax) is the intermediary.

Not necessarily. If you use desktop TurboTax (installed on your computer), TurboTax does not retain any information from your e-filed return. If you use TurboTax Online, your tax return data is stored on TurboTax's servers, regardless of whether you e-file or file by mail.

With TurboTax, there is no extra charge to e-file your federal return. If you use TurboTax Online, there is no extra charge to e-file your state return. If you use desktop TurboTax, there is an additional fee for state e-filing.

If you are claiming the first-time homebuyer credit you have to file by mail in order to include the documentation that is required to support the credit.

Sometimes there are glitches that prevent you from e-filing. Some examples are social security number conflicts, name matching errors, and errors in matching the previous year's AGI. These could be caused by errors you make, by errors in the IRS's files, or by a third party. There are also many kinds of errors that will cause your e-filed return to be rejected. Most of these are errors in what you entered. Generally, in all these cases, if one attempt to correct the error doesn't work, you should give up and file by mail.

There are limits on the number of copies of certain forms that can be e-filed, and some forms cannot be e-filed at all. With the simple return than you describe, you are not likely to hit any of these limits.

You could just omit the attachment. Probably no one ever looks at it anyway.

- Bob Sandler

Reply to
Bob Sandler

That's a pretty bold statement. Is there any support for this? I naturally assume they make journal backups (every transaction is written to back-up before it is committed).

I believe other ERO's, not just Turbotax, will also store the return info. Otherwise, how could they deal with rejects?

-Mark Bole

Reply to
Mark Bole

Pub 1345 (page 30) requires that the ERO retain a complete copy of the electronic return until the end of the calendar year.

Reply to
Don Priebe

That has not been true for three years. The Free File Fillable Forms program does not really have an intermediary, save whomever the contractor who maintains the site for the IRS. That site is pretty bare bones. The FFFF site displays each tax form in the appearance of the printed form. You type in the numbers and it calculates any lines that need arithmetic. It also crosslinks to the appropriate form, should a line call for it. Then you can click efile for free when done. Should you owe money you have to set up a separate electronic funds transfer account to pay it.

But you have know your way around the forms pretty well so you dont overlook a tax, deduction, or rebate. The commercial software sites like TurboTax are organized in topical order, e.g. income, deductions, etc. That will help make sure you fill all necessary forms. TT will calculate AMT and penalty forms in the background and tell you whether you need to file them or not.

Reply to
rick++

Another way to look at this is: with Turbotax you pay for e-filing whether you do it or not. When TT went to no-extra-charge e-filing they increased the price of the product by the amount they formerly charged to e-file. [Fed only - state was and is extra-charge. ]

Reply to
Jeremy S. Nichols

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