E-Filing: Fast, Easy and Secure
By Governor Mike Johanns
April 12, 2004
Dear Nebraska Neighbors:
For those Nebraskans who haven't already filed their taxes, time is running short. April 15, the state and federal deadline for filing taxes, is nearly upon us.
In the spirit of the season, the Nebraska Department of Revenue and the Internal Revenue Service (IRS) are reminding taxpayers that filing electronically allows their agencies to process refunds faster, easier and with more accuracy than a paper return.
The Federal/State E-file program provides a means to prepare and file both federal and state tax returns in just one transmission to the IRS. The computer software used is approved by both the IRS and the Nebraska Department of Revenue. While the cost of using these software programs or a paid preparer can vary, there are free filing options available for qualifying taxpayers at both the federal and state level.
Federal and state returns are first sent to the IRS. Once the federal return is accepted, the state return is made available to the Department of Revenue. Upon retrieval of the state return, the department issues an acknowledgment indicating if the state accepts it for processing so that the taxpayer knows it has been received. While there are some limitations for more complicated returns, most taxpayers are eligible to file electronically. Many taxpayers are enjoying the benefits of E-filing. In fact, more than 308,000 state taxpayers E-filed last year and more than 297,000 have E-filed so far this year.
Advantages of Federal/State E-file include computer filing accuracy and faster refund processing. Taxpayers can also have their refunds directly deposited into their bank accounts. If a taxpayer owes money, the return can still be filed electronically and the balance due can be directly debited from a bank account. Balances can also be paid by credit card. Taxpayers needing more time to prepare their tax returns can file a form 4868 extension request on-line with both the IRS and the state.
Following is a list of E-file filing options.
Free File Services:
Many taxpayers are eligible to file their federal return for free through the Free File Alliance. The Alliance consists of several software providers who have partnered with the IRS to offer free filing to taxpayers. Some of these software vendors also provide free filing for state tax returns. Links to this free filing site are available on the IRS Web site at www.irs.gov or at www.revenue.state.ne.us.
E-file Partners for Individual Taxpayers:
The IRS and the state of Nebraska have partnered with various private industry companies that offer affordable, convenient, user-friendly E-file and electronic payment options, as well as a variety of other services to assist the individual taxpayer. For more information, visit www.irs.gov or www.revenue.state.ne.us.
Other State Return Filing Options:
Many taxpayers qualify to file their return through the state's Telefile program. Also, most taxpayers who file a federal 1040EZ or 1040A are eligible to file their Nebraska return through the state's on-line Nebfile program. For more information, visit the Department of Revenue's Web site at www.revenue.state.ne.us.
Electronic Payment:
Electronic payment options are convenient, safe and secure methods for paying income taxes. If a balance is due, taxpayers can E-file and pay in a single step by authorizing an electronic funds withdrawal from their bank account. Another option is to pay by credit card. New this year, in addition to Visa and MasterCard, Nebraska is accepting Discover and American Express card payments.
Finally, taxpayers who are puzzled by new tax law or are uncertain which credits and deductions they can take may be able to get assistance at a volunteer site. The IRS Volunteer Income Tax Assistance (VITA) Program and the Tax Counseling for the Elderly (TCE) Program offer free tax help to those who qualify. Taxpayers needing help with their state tax filing can contact their nearest Department of Revenue regional office or call 1-800-742-7474.