Navigating the Digital Tax Maze

Thanks to the increased number of digital tools available, the days of digging through shoe boxes overflowing with receipts and frantically scrambling to meet tax deadlines seem like a relic of the past.  

The increased use of technology tools has made preparing a smoother, more efficient experience. But for some taxpayers, the shift online raises questions: 

  • How do I work with my CPA’s portal? 

  • How do I keep my information secure? 

  • What are the benefits of going digital?

Let's unpack the digital tax landscape and equip you with the knowledge to navigate it confidently.


Paperless Organization

Imagine having a single place to access W-2s, 1099s, and other crucial tax documents. 

Many employers, banks, investment firms, and even government agencies now offer the ability to download electronic versions of your tax forms. This gives you the ability to consolidate all of your key financial documents in a single place, be it a folder on your computer, or an online storage vault like Everplans or Dropbox.


Security Considerations

Reputable employers, financial institutions, and government agencies prioritize information security by creating encryption protocols and two-factor authentication to safeguard your data and ensure your data is only accessible to you.

Online vaults come with secure storage options, to keep your information readily available and safe from physical damage or misplacement. Many also provide the ability to securely share documents with someone helping prepare your taxes, be it a family member, daily money manager, or CPA.


CPA submission portals

More and more CPAs are offering online tax submission portals to streamline the process.

Since manual data entry is prone to mistakes, tax portals allow you to upload digital documents and utilize pre-filled forms to minimize errors and ensure your information is processed accurately.

Many of these portals also allow for secure communications directly with your CPA, to discuss questions, concerns, or identify missing information.   


Security Considerations

A tax submission portal eliminates the need for physical mail, or sending documents through email.  This not only allows the entire process to be organized, but minimizes the opportunity for fraudsters to intercept your information.   


E-filing Taxes

E-filing offers a faster, more secure, and convenient way to file your taxes compared to paper submissions. E-filing software helps to minimize errors by:

  • Importing information from tax documents

  • Performing calculations

  • Checking for accuracy 

  • Ensuring complete information

E-filing taxes also benefits the environment and can be more cost-effective.  Seniors can take advantage of resources such as:

  • IRS Free File: If your income is below a certain threshold, you can qualify for free tax preparation and e-filing through the IRS website.

    Filing directly through the IRS has added benefits of receiving a confirmation that your tax return has been received, and receiving your refund more quickly.

  • AARP Tax-Aide: This program offers free tax preparation and e-filing assistance to low-income and older adults.

  • VITA (Volunteer Income Tax Assistance): A similar program to AARP Tax-Aide, VITA provides free tax assistance to eligible individuals.


Ready to Go Paperless?

Start by uploading readily available digital documents and ease into fully paperless submissions as you get comfortable with the process. If you need help, our Daily Money Managers excel at helping get organized for tax season - and beyond. Contact us today to discuss how we can help you. 

Sharon Zissman