Complete Guide to Tax Filing

Last year, over 131 million Americans filed their 1040s electronically—that's roughly 19 out of every 20 returns the IRS processed. Paper filing isn't dead, but it's getting pretty close. Why? Because taxpayers discovered something the IRS has been saying for years: electronic filing cuts through red tape faster than a hot knife through butter.

Here's what you need to know about filing digitally, from choosing software to tracking your refund.

What Is Electronic Tax Filing?

E-filing means sending your completed tax return straight to the IRS through their approved digital network instead of stuffing envelopes and hunting for stamps. Think of it as the difference between emailing a document and sending it via courier—same destination, wildly different arrival times.

The program started back in 1986 when the IRS let a small group of tax preparers test electronic transmission. By 1990, they'd opened it up more widely, though you still needed to work through a professional. Fast-forward to today, and you can file from your kitchen table in your pajamas if that's your style.

Who gets to use it? Pretty much everyone. Got a Social Security number or an ITIN? You're in. The system accepts most common forms—your basic 1040, Schedule C if you freelance, Schedule A when you itemize, Schedule E for rental properties. Multiple W-2s from job hopping? No problem. Stack of 1099s from your side hustles? The software handles it.

The IRS doesn't build tax prep software themselves. Instead, they've pa...