Delivery Confirmation

• A basic advantage of filing taxes online is that you will automatically receive an electronic delivery confirmation. Usually within hours of hitting the send button, you will get an email confirming that your file has not only been delivered but also accepted by the IRS or your state's tax authority. You can save this confirmation email, which will also contain a reference number, as proof that you have submitted your taxes on time. Paper returns, on the other hand, do not create a similar paper trail. Due to the excessive volume of tax filings, neither the IRS nor states will sign a receipt of paper returns, and you will therefore not have indisputable proof of your timely filing.
  
  

Faster Returns

• Since electronically submitted files are received almost instantly, you will also get any refunds far faster. On the flip side, of course, any taxes you owe will be taken out of your bank account, via electronic funds transfer or the cashing of a physical check, just as quickly. Most people, however, are owed money by the IRS and prefer faster processing.
  
  Potential mistakes in your tax return will also be caught by the IRS faster, and you will be notified sooner. This means you can clear up errors quickly and while the filing is still fresh in your mind, instead of receiving a letter several months later when you may have long stuffed the receipts at the bottom of your least favorite drawer.
  
  

Electronic Record-keeping

• Most electronic programs you can use to file your taxes online will ask you to register by creating a username and password. This allows your data to be stored at a remote location and has numerous benefits. First, it allows you to work on your return at your pace with no fear of losing any work you have previously completed. In addition, you can go back, even years later, and quickly access a copy of your tax returns from any computer to print out a copy or look up critical information. If you use the same program the next year, you can save even more time as the software will automatically fill in such lines as your name, Social Security number and key figures carried over from last year's return.
  
  

Safety

• Keep in mind that any piece of information transmitted over the Internet carries some risk of being intercepted by hackers. To minimize this risk, scan your computer regularly for viruses and malware and use strong passwords that are easy for you to remember but hard for others to guess. Share passwords only with those who must absolutely have access to your files. If an email looks suspicious, do not open it and do not send personal information to suspicious email addresses.