Electronic Filing - E-File

DEFINITION of 'Electronic Filing - E-File'

The process of submitting tax returns over the Internet, using tax preparation software that has been pre-approved by the relevant tax authority, such as the IRS or the Canada Revenue Agency. E-filing has manifold benefits; the taxpayer can file a tax return from the comfort of home, at any convenient time, once the tax agency begins accepting returns.

BREAKING DOWN 'Electronic Filing - E-File'

Since e-filed returns can be processed much faster than paper returns, the taxpayer can generally expect a faster tax refund, if applicable. The benefits of e-filing have made it increasingly popular in recent years. E-filing saves the tax agency time and money, because the tax data is transmitted directly into its computers, significantly reducing the possibility of keying and input errors.

RELATED TERMS
  1. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
  2. Tax Benefit

    A tax benefit is an allowable deduction on a tax return intended ...
  3. Tax Liability

    The total amount of tax that an entity is legally obligated to ...
  4. Tax Break

    A tax break is a savings on a taxpayer's liability. A tax break ...
  5. Tax Return

    1. The tax form or forms used to file income taxes with the Internal ...
  6. Tax Year

    The period of time which is covered by a particular tax return. ...
Related Articles
  1. Personal Finance

    Tax Software Comparison

    taxes
  2. Personal Finance

    Missed the Tax Return Deadline? Here's What to Do

    Most important: Do it now.
  3. Investing

    Is Your IRS E-file PIN Secure?

    The tax records of more than 100,000 citizens were put at risk because of a hacker attempt on the IRS's e-file website.
  4. Personal Finance

    Next Season, File Taxes On Your Own

    Master these fundamentals and you'll be doing your own taxes with minimal stress.
  5. Personal Finance

    Common Tax Mistakes To Avoid

    Find out what mistakes people often make on their returns, and how to avoid them on yours.
  6. Personal Finance

    Explaining Tax Returns

    A tax return is the form or forms used to file income taxes with the IRS.
  7. Personal Finance

    What's IRS Form 1040 For?

    Most U.S. taxpayers will be familiar with the 1040. By the end of filling it out, you'll know how much tax you owe, or what your refund is.
  8. Personal Finance

    Use Tax Vs. Internet Sales Tax: How Are They Different?

    Learn about the differences between a use tax and an Internet sales tax. Find out about transactions in which the taxes apply, and to whom they apply.
  9. Personal Finance

    Which Is Better? Tax Preparer or Tax Software

    Every taxpayer – and every year – is different, so here are four factors to help you decide whether a tax pro or software is best for you.
  10. Financial Advisor

    Federal Tax Brackets

    Why do we have income tax brackets? What do they do for us? Read this to understand the basics and where to find your own bracket.
RELATED FAQS
  1. What is the difference between federal and state withholding tax?

    Discover whether you can file your taxes by yourself. The three main options for tax preparation are a tax professional, ... Read Answer >>
  2. What is the difference between income tax and capital gains tax?

  3. Do I need to file an income tax return every year?

    Understand if a person needs to file a tax return every year. Learn the benefits of filing a yearly income tax return even ... Read Answer >>
  4. How does the marginal tax rate system work?

    The marginal tax rate is the rate of tax that income earners incur on each additional dollar of income. As the marginal tax ... Read Answer >>
  5. What's the difference between a tax rate and a tax bracket?

    These two terms are often incorrectly used interchangeably. Find out the difference between your tax rate and your tax bracket. ... Read Answer >>
  6. How do I use the IRS Free File tax forms?

    Free File is a way for taxpayers to prepare and file their federal taxes online for free. The service is available to individuals ... Read Answer >>
Trading Center