The New York State Department of Taxation and Finance announced today that e-filing continues to gain strength, reducing by 15% the number of paper income tax returns filed during last year’s tax season.
By the October 15 deadline for filing extended tax returns, nearly 90% of the 10.4 million income tax returns received were e-filed—an increase of 4% from the previous year. At a cost of roughly $5 per processing a paper income tax return—compared to just pennies for e-filed returns—the savings for New Yorkers adds up to $45 million each year.
“We’re glad the vast majority of New York taxpayers recognize that e-filing is the easiest, fastest and safest way to file their taxes,” said Commissioner Thomas Mattox. “E-filing also dramatically reduces the possibility of errors – paper returns are 20 times more likely to have an error.”
The increase in e-filing also contributes to the Department’s ability to issue refunds 27% faster than in previous years, with the average refund issued in 22 days this year. When combined with a continued increase in direct deposit to nearly 70%, more New York taxpayers are receiving their refunds faster than ever before.
“If you’re not e-filing and using direct deposit to receive your refund, you are waiting longer to get your money than 90% of New Yorkers,” added Commissioner Mattox. “Choose the fastest, safest and easiest methods to file your return and receive your refund.”
The 2014 filing season will get underway in January, and once again it offers New Yorkers the ability to e-file for free. Nearly 90% of all New York State taxpayers qualify to do so through a variety of options:
Free State and Federal E-Filing – Use an approved e-file software provider available from the Tax Department’s Web site.
New York State Web File – Most New Yorkers—of all income levels—can prepare and e-file their State tax return directly at the Department’s Web site.
Free Tax Preparation by Certified Volunteers – The IRS and AARP offer free tax preparation by trained volunteers throughout the filing season. More information will become available in late January.
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