How to e-File Your Tax Return

 RICHMOND - A new video by the Virginia Department of Taxation helps individuals choose the best way to file their 2012 income taxes electronically.

The video, "How to e-File Your Tax Return," gives an overview of three electronic filing methods: Free File, Free Fillable Forms, and Paid e-File.

The fastest way to get your tax refund is to file your return electronically, or e-File, and request direct deposit for your refund.  Filing electronically is easier than ever and is free in many cases.  Last year, 72 percent of state income tax returns, or over 2.8 million, were e-Filed, while just over 1 million paper returns were filed.  Fifty-six percent of refunds were deposited directly into bank accounts.  There is never a charge for direct deposit.  Both the number of e-Filed returns and the number of direct-deposit refunds increased by 4 percent last year.

The video explains that the first option, Free File, is a federal-state program that helps qualified individuals prepare and file their federal and state tax returns for free.  There are several software companies participating in Free File and each has its own criteria for determining who can use its services for free.  If you qualify and want to use Free File, you may choose a company and enter its web portal through the Department's website.   You may then prepare your federal and state returns with the help of the interview-based software and e-File your returns for free.

The second option outlined in the video is Free Fillable Forms.  Free Fillable Forms is an online fill-in version of the Virginia Form 760, the state's resident income tax return, and includes the most commonly used schedules.  You must read the instructions, know which schedules to use, and do your own calculations as you complete your return.  There are no age or income restrictions, but there are other requirements if you want to e-File your return.  For example, you must be a full-year Virginia resident, and some tax credits cannot be claimed using Free Fillable Forms.

Paid e-File is the third filing method discussed in the video.  Paid e-File is a way to file your federal and state returns through a commercial software vendor for a fee.  The Department has a list of over 30 approved commercial software products to choose from on its website.  You can click on the companies that interest you to find out more about their services and fees.  Like Free File, these products do the calculations for you, while navigating you through your return.  You can then file your federal and state returns electronically. 

"Electronic filing is faster and more convenient than completing a paper return, it's practically error-proof, and it's more secure than mailing your return," said Joel Davison, the Department's Public Relations Manager.  "There's a reason why nearly three out of four people now file electronically in Virginia - they get their money fast and securely."

For more information, visit the Department's website at www.tax.virginia.gov.  Click here for the Department's electronic filing page.