Everything you need to know about e-filing

06 Dec, 2015 TAX LAW 0

Chapter 45
Everything you need to know about e-filing

Information You’ll Need to E-File

Whether you decide to e-file or not, your first step is to get all of your tax information together. That way you’ll save time and won’t have to stop in the middle of preparing your return to find a missing document. Here’s what you’ll need:

Social security numbers for yourself, your spouse, and any dependents.
Forms W-2, W-2G, and 1099-R from all employers or payers are required for yourself and your spouse. If you are filing electronic returns using a personal computer, you enter the data from the forms into the electronic filing software. Unlike paper tax returns, you don’t have to attach Forms W-2, Forms W-2G and Forms 1099-R. However, if you choose to use an “authorized IRS e-file Provider” (explained later), you must provide Forms W-2, Forms W-2G, and Forms 1099-R to the authorized IRS e-file provider before the provider is allowed to transmit the electronic return to the IRS. It is not required that you separately send these forms to the IRS.
Forms 1099 for interest, dividends, retirement, or other income, or any Forms 1099 with income tax withholding.
Schedules K-1 from passthrough entities including partnerships, S corporations, estates or trusts.
Expense receipts for itemized deductions (Schedule A).
Receipts and records for other income or expenses, including business income and expenses, if you are a sole proprietor.
Checking and/or savings account numbers and the routing number for your financial institution (for a faster refund, or to pay electronically).
A copy of your prior year tax return.

Note: For a brief explanation of some of the details of e-filing, also see Filing Information, Does My Return Have to Be on Paper? in chapter 1, Filing information.

Signing Your Electronic Tax Return

You will sign your electronic return by using a Self-Select PIN (see discussion later) for filing a completely paperless return. This allows you to confirm your identity with a five-digit PIN and your prior year’s adjusted gross income (AGI). Or if you filed electronically last year, you can use the same PIN that you used to file last year’s return. In most cases it is unnecessary to mail anything to the IRS when using e-file to transmit your return. In certain cases, the IRS will require you to mail Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return, along with the supporting documents. See the Supporting Documents section for more information.

Self-Select PIN

The Self-Select PIN (Personal Identification Number) method allows you to electronically sign your e-filed return by selecting a five-digit PIN as your signature. The five-digit PIN can be any five numbers except all zeroes. You can use your PIN whether you do your own taxes using a personal computer (described later) or have a tax professional prepare them for you.

You create your own PIN. You do not register the PIN with the IRS before filing or need to contact the IRS to get it. When you use one of the commercially available tax software packages on your personal computer that support the Self-Select PIN option, you will be guided through the process of entering your own PIN. If you use a tax professional, the preparer will help you and will require that you sign an e-filing authorization form in that process. If filing a joint return, a PIN is needed for each taxpayer. The IRS has a web-based application called “Electronic Filing PIN Help” that provides taxpayers with a PIN to be used when they cannot locate their prior year AGI or prior year PIN; refer to www.irs.gov for more information.

The following taxpayers are eligible to use the Self-Select PIN method:

Taxpayers who are eligible to file Form 1040, Form 1040A, Form 1040EZ, and Form 1040-SS(PR) for Tax Year 2014.
Taxpayers who did not file for Tax Year 2013, but have filed previously.
Taxpayers who are age 16 or older on or before December 31, 2014, who have never filed a tax return.
Taxpayers under age 16, filing as “primary” taxpayers, who have filed previously. A primary taxpayer is the taxpayer whose name appears on the first name line of the return.
Taxpayers under age 16, filing as “secondary” taxpayers (spouse), who filed in the immediate prior year. A secondary taxpayer is the person whose name appears in the spouse’s name line of the return.
Military personnel residing overseas with an APO/FPO address.
U.S. citizens and resident aliens residing in the U.S. Possessions of the Virgin Islands, Puerto Rico, American Samoa, Guam and Northern Marianas, or with a foreign country address.
Taxpayers filing a Form 4868 (extension of time to file) or Form 2350 (extension for certain U.S. citizens living abroad).
Those who are filing on behalf of deceased taxpayers.
Taxpayers filing Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return, with required attachments.

The following taxpayers are not eligible to use the Self-Select PIN method:

Primary taxpayers under age 16 who have never filed.
Secondary taxpayers (spouse) under age 16 who did not file in the immediate prior year.

Supporting Documents

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Everything you need to know about e-filing