More Americans Filing Taxes Online

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With tax season here and the deadline looming for Americans to make their annual payments to Uncle Sam more people are filing their taxes online.

More Americans Filing Taxes Online
More Americans Filing Taxes Online
More Americans Filing Taxes Online

According to the Conference Board and TNS dissipating online security concerns have led to more online filing. Just 43 percent of Internet users are "extremely" worried about security risks in filing their taxes online, a decrease from 52 percent in 2004.

Around two-thirds of taxpayers have filed their taxes electronically over the past three years, and half have done so for five years or more.

In 2006, 73 million people filed their taxes online and million filed from their home computers, according to the IRS.

This year 40 percent is expected to file their 2006 federal taxes online, an increase of 28 percent over three years ago. One of the major drivers for filing online is direct deposit of refunds.

"Whether using professional tax services or do-it-yourself software, electronic filing continues to grow year after year. And, by far, direct deposit is the preferred refund method," said Lynn Franco of the Conference Board.

"This year’s ability to split refunds among up to three accounts is yet another choice that should broaden the appeal of electronic filing."

The IRS offers a free online filing system that has had a decrease in use over the past three years because of a drop in the number of people who are eligible to use the system.

Close to 40 percent of consumers who will file online will use a professional tax service with women more likely then men to seek help.

 For consumers who do not file online most do not do their own taxes or they have anxiety about having their information on the Internet.

This years tax deadline is Tuesday April 17.


More Americans Filing Taxes Online
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